View Filing Data

Cost of services, maintenance and rentals

10,265

10,771

11,465

Costs and Expenses

Cost of sales

2,491

2,657

2,922

3,580

3,725

3,831

Cost of financing

133

128

130

Research, development and engineering expenses

446

476

511

Selling, administrative and general expenses

2,631

2,695

2,865

Restructuring and related costs

220

264

Amortization of intangible assets

Other expenses, net

141

200

195

Total Costs and Expenses

9,695

10,203

10,541

Income Before Income Taxes and Equity Income

570

568

924

Income tax expense

481

193

Equity in net income of unconsolidated affiliates(1)

^[1]

115

127

109

Income (loss) from discontinued operations, net of tax

204

633

840

(1,093)

(374)

Net Income (Loss)

207

(460)

466

Less: Net income attributable to noncontrolling interests

Net Income (Loss) Attributable to Xerox

195

(471)

448

Net income from continuing operations

$ 192

$ 622

$ 822

Basic Earnings (Loss) per Share(2):

Continuing Operations (in dollars per share) | $ / shares

$ 0.70

$ 2.36

^[2]

$ 3.00

^[2]

Discontinued operations (in dollars per share) | $ / shares

0.01

(4.31)

^[2]

(1.41)

^[2]

Total Basic Earnings (Loss) per Share | $ / shares

0.71

(1.95)

^[2]

1.59

^[2]

Diluted Earnings (Loss) per Share(2):

Continuing Operations (in dollars per share) | $ / shares

0.70

2.33

^[2]

2.97

^[2]

Discontinued operations (in dollars per share) | $ / shares

0.01

(4.26)

^[2]

(1.39)

^[2]

Total Diluted Earnings (Loss) per Share | $ / shares

$ 0.71

$ (1.93)

^[2]

$ 1.58

^[2]

[1]	Equity in net income of unconsolidated affiliates has been revised for all applicable prior periods presented throughout this document. Refer to Note 2 - Correction of Fuji Xerox Misstatement in Prior Period Financial Statements for additional information on this revision.
[2]	Reflects our one-for-four reverse stock split that became effective on June 14, 2017. Refer to Note 1 - Basis of Presentation and Summary of Significant Accounting Policies for further information.

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

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Net Income (Loss)

$ 207

$ (460)

$ 466

Less: Net income attributable to noncontrolling interests

Net Income (Loss) Attributable to Xerox

195

(471)

448

Unrealized gains (losses), net

^[1]

483

(347)

(651)

^[1]

(15)

Changes in defined benefit plans, net

^[1]

106

126

153

Other Comprehensive Income (Loss), Net

^[1]

590

(236)

(475)

Less: Other comprehensive income (loss), net attributable to noncontrolling interests

^[1]

(3)

(1)

Other Comprehensive Income (Loss), Net Attributable to Xerox

^[1]

589

(233)

(474)

Comprehensive Income (Loss), Net

797

(696)

(9)

Less: Comprehensive income, net attributable to noncontrolling interests

Comprehensive Income (Loss), Net Attributable to Xerox

$ 784

$ (704)

$ (26)

[1]	Refer to Note 22 - Other Comprehensive Income (Loss) for gross components of Other Comprehensive Income (Loss), reclassification adjustments out of Accumulated Other Comprehensive Loss and related tax effects.

Consolidated Balance Sheets - USD ($) shares in Thousands, $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Assets
Cash and cash equivalents	$ 1,293	$ 2,223
Accounts receivable, net	1,357	961
Billed portion of finance receivables, net	112	90
Finance receivables, net	1,317	1,256
Inventories	915	841
Assets of discontinued operations	0	1,002
Other current assets	236	619
Total current assets	5,230	6,992
Finance receivables due after one year, net	2,323	2,398
Equipment on operating leases, net	454	475
Land, buildings and equipment, net	629	660
Investments in affiliates, at equity	1,404	1,294
Intangible assets, net	268	290
Goodwill	3,930	3,787
Deferred tax assets, long-term	1,026	1,472
Other long-term assets	682	683
Total Assets	15,946	18,051
Liabilities and Equity
Short-term debt and current portion of long-term debt	282	1,011
Accounts payable	1,108	1,126
Accrued compensation and benefits costs	444	420
Liabilities of discontinued operations	0	1,002
Other current liabilities	907	1,095
Total current liabilities	2,741	4,654
Long-term debt	5,235	5,305
Pension and other benefit liabilities	1,595	2,240
Post-retirement medical benefits	662	698
Other long-term liabilities	206	193
Total Liabilities	10,439	13,090
Commitments and Contingencies (See Note 19)
Convertible Preferred Stock	214	214
Common stock	255	254
Additional paid-in capital	3,893	3,858
Retained earnings	4,856	4,934
Accumulated other comprehensive loss	(3,748)	(4,337)
Xerox shareholders’ equity	5,256	4,709
Noncontrolling interests	37	38
Total Equity	5,293	4,747
Total Liabilities and Equity	$ 15,946	$ 18,051
Shares of common stock issued and outstanding	254,613	253,594

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash Flows from Operating Activities:
Net income (loss)	$ 207	$ (460)	$ 466
(Income) loss from discontinued operations, net of tax	(3)	1,093	374
Income from continuing operations	204	633	840
Adjustments required to reconcile net income (loss) to cash flows from operating activities:
Depreciation and amortization	527	563	590
Provision for receivables	46	43	54
Provision for inventory	27	28	30
Deferred tax expense (benefit)	399	(9)	383
Net gain on sales of businesses and assets	(15)	(22)	(44)
Undistributed equity in net income of unconsolidated affiliates	(18)	(75)	(53)
Stock-based compensation	52	50	27
Restructuring and asset impairment charges	201	230	27
Payments for restructurings	(224)	(118)	(79)
Defined benefit pension cost	194	127	141
Contributions to defined benefit pension plans	(836)	(178)	(301)
Increase in accounts receivable and billed portion of finance receivables	(529)	(151)	(128)
Collections of deferred proceeds from sales of receivables	213	246	259
(Increase) decrease in inventories	(69)	7	(101)
Increase in equipment on operating leases	(217)	(268)	(291)
Decrease (increase) in finance receivables	162	126	(8)
Collections on beneficial interest from sales of finance receivables	21	24	46
(Increase) decrease in other current and long-term assets	(17)	82	15
Decrease in accounts payable and accrued compensation	(42)	(244)	(125)
Decrease in other current and long-term liabilities	(15)	(51)	(45)
Net change in income tax assets and liabilities	11	(182)	(112)
Net change in derivative assets and liabilities	75	(30)	(37)
Other operating, net	(28)	187	(10)
Net cash provided by operating activities of continuing operations	122	1,018	1,078
Net cash (used in) provided by operating activities of discontinued operations	(88)	77	533
Net cash provided by operating activities	34	1,095	1,611
Cash Flows from Investing Activities:
Cost of additions to land, buildings and equipment	(69)	(93)	(84)
Proceeds from sales of land, buildings and equipment	3	25	92
Cost of additions to internal use software	(36)	(45)	(64)
Proceeds from sale of businesses, net	20	0	0
Acquisitions, net of cash acquired	(87)	(30)	(13)
Other investing, net	138	(3)	26
Net cash used in investing activities of continuing operations	(31)	(146)	(43)
Net cash (used in) provided by investing activities of discontinued operations	0	(251)	551
Net cash (used in) provided by investing activities	(31)	(397)	508
Cash Flows from Financing Activities:
Net proceeds (payments) on short-term debt	2	1,888	(147)
Proceeds from issuance of long-term debt	1,008	25	1,079
Payments on long-term debt	(1,832)	(988)	(1,302)
Common stock dividends	(274)	(307)	(302)
Preferred stock dividends	(17)	(24)	(24)
Proceeds from issuances of common stock	0	9	19
Excess tax benefits from stock-based compensation	0	0	19
Payments to acquire treasury stock, including fees	0	0	(1,302)
Repurchases related to stock-based compensation	(15)	(1)	(51)
Payments to noncontrolling interests	18	17	62
Other financing, net	161	(1)	(1)
Net cash (used in) provided by financing activities	(985)	584	(2,074)
Effect of exchange rate changes on cash and cash equivalents	52	(30)	(77)
(Increase) decrease in cash of discontinued operations	0	(257)	8
(Decrease) increase in cash and cash equivalents	(930)	995	(24)
Cash and cash equivalents at beginning of year	2,223	1,228	1,252
Cash and Cash Equivalents at End of Year	$ 1,293	$ 2,223	$ 1,228

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]

Xerox Shareholders' Equity [Member]

Conduent [Domain]

AOCL [Member]

^[1]

Conduent [Domain]

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]

Beginning Balance at Dec. 31, 2014

$ 10,596

$ 281

$ 5,126

$ (105)

$ 9,450

$ (4,156)

Noncontrolling Interests Beginning Balance at Dec. 31, 2014

$ 75

Total Equity Beginning Balance at Dec. 31, 2014

$ 10,671

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

Comprehensive income (loss), net attributable to Xerox

(26)

448

(474)

Comprehensive income (loss), net attributable to noncontrolling interest

Cash dividends declared-common

(9)

^[2],[3]

(299)

Cash dividends declared-preferred

^[3],[4]

(24)

Payments to acquire treasury stock, including fees

(1,302)

Cancellation of treasury stock

(31)

(1,376)

1,407

Distributions and purchase - noncontrolling interests

(49)

Ending Balance at Dec. 31, 2015

8,975

253

3,777

9,575

(4,630)

Noncontrolling Interests Ending Balance at Dec. 31, 2015

Total Equity Ending Balance at Dec. 31, 2015

9,018

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

Comprehensive income (loss), net attributable to Xerox

(704)

(471)

(233)

Comprehensive income (loss), net attributable to noncontrolling interest

Cash dividends declared-common

(696)

^[2],[3]

(317)

Cash dividends declared-preferred

^[3],[4]

(24)

Distributions and purchase - noncontrolling interests

(13)

Separation of Conduent

$ (3,303)

$ 526

$ 0

$ (3,829)

Ending Balance at Dec. 31, 2016

4,709

254

3,858

4,934

(4,337)

Noncontrolling Interests Ending Balance at Dec. 31, 2016

Total Equity Ending Balance at Dec. 31, 2016

4,747

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

Comprehensive income (loss), net attributable to Xerox

784

195

589

Comprehensive income (loss), net attributable to noncontrolling interest

Cash dividends declared-common

797

^[2],[3]

(259)

Cash dividends declared-preferred

^[3],[4]

(14)

Distributions and purchase - noncontrolling interests

(15)

(1)

(14)

Ending Balance at Dec. 31, 2017

5,256

$ 5,256

$ 255

$ 3,893

$ 0

$ 4,856

$ (3,748)

Noncontrolling Interests Ending Balance at Dec. 31, 2017

$ 37

Total Equity Ending Balance at Dec. 31, 2017

$ 5,293

[1]	AOCL - Accumulated other comprehensive loss.
[2]	Cash dividends declared on common stock of $0.25 per share in each quarter of 2017, $0.31 per share in each quarter of 2016 and $0.28 per share in each quarter of 2015.
[3]	Reflects our one-for-four reverse stock split that became effective on June 14, 2017. Refer to Note 1 - Basis of Presentation and Summary of Significant Accounting Policies for further information.
[4]	Cash dividends declared on preferred stock of $20 per share in each quarter of 2017, 2016 and 2015.

Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015
Statement of Stockholders' Equity [Abstract]
Dividends per common share (in dollars per share)	$ 0.25	$ 0.25	$ 0.25	$ 0.25	$ 0.31	$ 0.31	$ 0.31	$ 0.31	$ 0.28	$ 0.28	$ 0.28	$ 0.28
Dividends per preferred share (in dollars per share)	$ 20	$ 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, 2017

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.

Description of Business

Xerox is a $10.3 billion global enterprise for document management solutions. We provide advanced document technology, services, software and genuine Xerox supplies for a range of customers including small and mid-size businesses, large enterprises, governments and graphic communications providers, and for our partners who serve them. We operate in approximately 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 Income (Loss) 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 Income (Loss) 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

On December 31, 2016 we completed the separation of our Business Process Outsourcing (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 for all periods presented.

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.

Refer to Note 5 - Divestitures for additional information regarding discontinued operations and other divestitures.

Reverse Stock Split

On May 23, 2017, the Board of Directors authorized a reverse stock split of the issued and outstanding Xerox common stock at a ratio of one-for-four shares, together with the proportionate reduction in the authorized shares of its common stock from 1,750,000,000 shares to 437,500,000 shares. Shareholder approval for the reverse stock split was obtained at the company's Annual Shareholder Meeting on May 23, 2017 and the reverse stock split became effective on June 14, 2017. At the effective date, every four shares of the company’s common stock that were issued and outstanding were automatically combined into one issued and outstanding share, without any change in par value of such shares. Accordingly, we reclassified $760 from Common stock to Additional paid-in capital. The reverse stock split also correspondingly affected all outstanding Xerox equity awards and outstanding convertible securities.

All authorized, issued and outstanding stock and per share amounts contained in the accompanying Consolidated Financial Statements have been adjusted to reflect this reverse stock split for all prior periods presented.

Prior Period Adjustments

Refer to Note 2 - Correction of Fuji Xerox Misstatement in Prior Period Financial Statements for additional information regarding the 2017 correction of an error related to the amounts recorded as equity income for our Fuji Xerox joint venture.

In 2015, we recorded a $16 out-of-period adjustment associated with an 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 available information including 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, 2017:



	Year Ended December 31,
Expense/(Income)	2017		2016		2015
Provisions for restructuring and related costs	$	220	$	264	$	27
Provision for receivables	46		43		54
Provisions for obsolete and excess inventory	27		28		30
Provision for product warranty liability	15		15		22
Depreciation and obsolescence of equipment on operating leases	265		276		286
Depreciation of buildings and equipment	136		148		151
Amortization of internal use software	65		73		83
Amortization of product software	4		4		4
Amortization of acquired intangible assets	53		58		60
Amortization of customer contract costs	4		4		6
Defined pension benefits - net periodic benefit cost	194		127		141
Retiree health benefits - net periodic benefit cost	30		35		2
Income tax expense	481		62		193

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 using the modified retrospective method of adoption. 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, 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. Additionally, we expect the unit of accounting, that is, the identification of performance obligations, will be consistent with current revenue guidance. Accordingly, the adoption of this standard is not expected to have a material impact for the large majority of our revenues. Lastly, a significant portion of our equipment sales are either recorded as sales-type leases or through direct sales to distributors and resellers and these revenue streams are not expected to be impacted by the adoption of ASU 2014-09. As part of our adoption, we reviewed certain contracts that were either more complex or where the revenue recognition criteria was not directly aligned with invoicing to the customer, to determine the treatment under ASU 2014-09. Based on this review we determined that there would not be a material change in our pattern of revenue recognition for these arrangements. The only change of significance identified in our adoption process involves a change in our classification of certain revenues currently reported in Services revenues. These revenues, which are approximately $50 annually, relate to certain analyst services performed in connection with the installation of equipment that are expected to be considered part of the equipment sale performance obligation in 2018. Accordingly, in 2018 these revenues will be reported as part of Sales.

Another change we will have upon adoption is with respect to deferred contract costs, which include incremental costs of obtaining a contract and costs to fulfill a contract. Deferred contract costs have been minimal under our current practices as most costs to obtain a contract and fulfill a contract were expensed as incurred. However, as a result of the contract cost guidance included in the new standard, we expect to record a transition asset upon adoption of approximately $175 primarily related to the incremental cost to obtain contracts. Substantially all of this adjustment is related to the deferral of sales commissions paid to sales people and agents in connection with the placement of equipment with post sale service arrangements. This amount is expected to be amortized over its estimated period of benefit, which we currently estimate to be approximately four years. We do not expect the post-adoption policy of deferral and amortization of these costs to have a material impact on our future Consolidated Statements of Income. We expect to continue to assess the impacts of the additional disclosures the new standard requires as part of our reporting process for the first quarter 2018.

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, 2017 was approximately $450 primarily related to leases of facilities.

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 guidance is either unclear or does not include specific requirements. 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 $234 and $270 of collections on beneficial interests as operating cash inflows on the Statement of Cash Flows for the years ended December 31, 2017 and 2016, respectively. Accordingly, since the update must be applied retrospectively, our reported 2017 and 2016 operating and investing cash flows will be revised by those amounts when reported in 2018. There is no expected impact to our 2018 cash flows from this reporting change due to the termination of all accounts receivable sales arrangements in North America and most arrangements in Europe and the final repurchase of previously sold finance receivables during the fourth quarter of 2017. Refer to Note 6 - Accounts Receivable, Net and Note 7 Finance Receivables, Net for additional information regarding our receivable sale programs. The other seven 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. This update is effective for our fiscal year beginning January 1, 2018 and must be applied retrospectively through a revision of previously reported amounts. We held $75 and $179 of restricted cash, currently reported in other current or long-term assets at December 31, 2017 and December 31, 2016, respectively. The changes in our restricted cash balances were primarily related to our accounts receivable sales programs, which were terminated during the fourth quarter of 2017. Accordingly, this update is not expected to have a material impact on our financial condition, results of operations or cash flows. Refer to Note 13 - Supplemental Financial Information for additional information regarding our restricted cash balances.

Derivatives

In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The amendments in this update expand and refine hedge accounting for both financial and non-financial risk components, aligns the recognition and presentation of the effects of hedging instruments with the same income statement line item that the hedged item is reported and includes certain targeted improvements to ease the application of current guidance related to the assessment of hedge effectiveness. This update is effective for our fiscal year beginning January 1, 2019, with early adoption permitted at any interim period. We are currently evaluating the impact of the adoption of ASU 2017-12 on our consolidated financial statements.

Retirement Benefits

In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This update changes how employers that sponsor defined benefit pension plans and other postretirement plans present net periodic benefit costs in the income statement. An employer is required to report the service cost component in the same line item or items as other compensation costs arising from services rendered by the affected employees during the period. Other components of net retirement benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. The update also allows only the service cost component to be eligible for capitalization, when applicable. This update is effective for us beginning January 1, 2018. The update must be applied retrospectively for the presentation requirements and prospectively for the capitalization of the service cost component requirements. The adoption of this update is not expected to have a material impact on our financial condition, results of operations or cash flows. Refer to Note 17 - Employee Benefit Plans for the service cost component and other components of net retirement benefit cost.

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, however we early adopted this update in the fourth quarter of 2017. The adoption of this update did not have any effect on our financial condition, results of operations or cash flows.

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, 2018 and is not expected to have a material impact on our financial condition, results of operations or cash flows.

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 was sold to a third party. This update is effective for our fiscal year beginning January 1, 2018 and is not expected to have a material impact on our financial condition, results of operations or cash flows.

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. We adopted ASU 2016-09 effective for our fiscal year beginning January 1, 2017. The adoption of ASU No. 2016-09 did not have a material impact on our financial condition, results of operations or cash flows. However, the impacts may vary and 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. For the year ended December 31, 2017, we recognized $3 of additional tax expense related to the application of this update.

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.

Other Updates

In 2017 and 2016, 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:


•	Service Concession Arrangements: ASU 2017-10, (Topic 853) Determining the Customer of the Operation Services (a consensus of the FASB Emerging Issues Task Force). This update is effective for our fiscal year beginning January 1, 2018.


•	Compensation - Stock Compensation: ASU 2017-09, (Topic 718) Scope of Modification Accounting. This update is effective for our fiscal year beginning January 1, 2018.


•	Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets: ASU 2017-05, (Subtopic 610-20) Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. This update is effective for our fiscal year beginning January 1, 2018.


•	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.


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

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).

Shipping and Handling

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

Other Significant Accounting Policies

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 $90, $95 and $126 in 2017, 2016 and 2015, 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 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 6 - Accounts Receivable, Net and Note 7 - Finance Receivables, Net for more details on our receivable sales.

Inventories

Inventories are carried at the lower of average cost or net realizable value. 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 8 - Inventories and Equipment on Operating Leases, Net and Note 9 - 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 9 - 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 whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable an impairment loss may have been incurred.

We normally assess goodwill for impairment at least annually during the fourth quarter. 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. Consistent with the determination that we had one operating segment, we determined that there is one reporting unit and tested goodwill for impairment at the entity level. We test goodwill by comparing the carrying amount of the entity to its fair value based on a quantitative analysis. If the fair value exceeds the carrying value, goodwill is not considered impaired. If the carrying value exceeds the fair value, goodwill is considered impaired and we would recognize an impairment loss for the excess.

Other intangible assets primarily consist of assets obtained in connection with business acquisitions, including installed customer base and distribution network relationships, existing technology, trademarks and non-compete agreements. 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 11 - 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 17 - 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.

Correction of Fuji Xerox Misstatement in Prior Period Financial Statements

12 Months Ended

Dec. 31, 2017

Accounting Changes and Error Corrections [Abstract]

Correction of Fuji Xerox Misstatement in Prior Period Financial Statements [Text Block]

Correction of Fuji Xerox Misstatement in Prior Period Financial Statements

Fuji Xerox is a joint venture between Xerox Corporation and Fujifilm Holdings Corporation (“Fujifilm”) in which Xerox holds a noncontrolling 25% equity interest and Fujifilm holds the remaining equity interest. In April 2017, Fujifilm publicly announced it had formed an independent investigation committee (IIC) to conduct a review of the appropriateness of the accounting practices at Fuji Xerox’s New Zealand subsidiary related to the recovery of receivables associated with certain bundled leasing transactions that occurred in, or prior to, Fuji Xerox’s fiscal year ending March 31, 2016.

The IIC’s review, completed during the second quarter 2017, identified total aggregate adjustments to Fuji Xerox's financial statements of approximately JPY 40 billion (approximately $360 based on the Yen/U.S. Dollar spot exchange rate at March 31, 2017 of 111.89). The adjustments identified by the IIC primarily related to misstatements at Fuji Xerox's New Zealand subsidiary as well as their Australian subsidiary and certain other adjustments. We determined that our cumulative share of the total aggregate adjustments identified as part of the investigation was approximately $90 and impacted our fiscal years 2009 through 2017.

In the second quarter 2017, we determined that the misstatements to our Equity in net income of unconsolidated affiliates in prior years and the first quarter of 2017 identified through the IIC's review were immaterial to our previously issued financial statements. However, we concluded that the cumulative correction of these misstatements would have had a material effect on our current year consolidated financial statements. Accordingly, we revised our previously issued annual consolidated financial statements for 2015 and 2016. Certain of the corrections discussed above affected periods prior to fiscal year 2015, and this effect was reflected as a cumulative, net of tax adjustment to reduce retained earnings as of January 1, 2015 by $87. The effect of the revision on our previously issued financial statements is provided in the tables below. Amounts throughout the consolidated financial statements and notes thereto have been adjusted to incorporate the revised amounts, where applicable.

Revised Annual Consolidated Statements of Income

The following tables reconcile selected lines from the company’s fiscal years of 2016 and 2015 Consolidated Statements of (Loss) Income from the previously reported amounts to the revised amounts:



	Year Ended December 31, 2016								Year Ended December 31, 2015
	As Reported			Adjustment		As Revised			As Reported		Adjustment			As Revised
Equity in net income of unconsolidated affiliates	$	121		$	6	$	127		$	135	$	(26	)	$	109
Income from Continuing Operations	627			6		633			866		(26		)	840
Net (Loss) Income	(466		)	6		(460		)	492		(26		)	466
Net (Loss) Income Attributable to Xerox	(477		)	6		(471		)	474		(26		)	448

Net income from continuing operations attributable to Xerox	$	616		$	6	$	622		$	848	$	(26	)	$	822

Basic Earnings (Loss) per Share:
Continuing operations	$	2.33		$	0.03	$	2.36		$	3.10	$	(0.10	)	$	3.00
Total	$	(1.98	)	$	0.03	$	(1.95	)	$	1.69	$	(0.10	)	$	1.59

Diluted Earnings (Loss) per Share:
Continuing operations	$	2.31		$	0.02	$	2.33		$	3.06	$	(0.09	)	$	2.97
Total	$	(1.96	)	$	0.03	$	(1.93	)	$	1.67	$	(0.09	)	$	1.58

_____________

Note: The sum of quarterly earnings per share may differ from the full-year amounts due to rounding, or in the case of diluted earnings per share, because securities that are anti-dilutive in certain quarters may not be anti-dilutive on a full-year basis.

Revised Consolidated Statements of Comprehensive (Loss) Income

The following tables reconcile selected lines from the company’s fiscal years of 2016 and 2015 Consolidated Statements of Comprehensive (Loss) Income from the previously reported amounts to the revised amounts:



	Year Ended December 31, 2016									Year Ended December 31, 2015
	As Reported			Adjustment			As Revised			As Reported			Adjustment			As Revised
Net (Loss) Income	$	(466	)	$	6		$	(460	)	$	492		$	(26	)	$	466
Net (Loss) Income Attributable to Xerox	(477		)	6			(471		)	474			(26		)	448

Translation adjustments, net	$	(346	)	$	(1	)	$	(347	)	$	(660	)	$	9		$	(651	)
Other Comprehensive Loss, Net	(235		)	(1		)	(236		)	(484		)	9			(475		)
Other Comprehensive Loss, Net Attributable to Xerox	(232		)	(1		)	(233		)	(483		)	9			(474		)

Comprehensive (Loss) Income, Net	$	(701	)	$	5		$	(696	)	$	8		$	(17	)	$	(9	)
Comprehensive Loss, Net Attributable to Xerox	(709		)	5			(704		)	(9		)	(17		)	(26		)

Revised Consolidated Balance Sheets

The following table reconciles selected lines from the company’s Consolidated Balance Sheets at December 31, 2016 and 2015 from the previously reported amounts to the revised amounts:



	As of December 31, 2016									As of December 31, 2015
	As Reported			Adjustment			As Revised			As Reported			Adjustment			As Revised
Investments in affiliates, at equity	$	1,388		$	(94	)	$	1,294		$	1,382		$	(99	)	$	1,283
Total Assets	18,145			(94		)	18,051			25,541			(99		)	25,442

Retained earnings	$	5,039		$	(105	)	$	4,934		$	9,686		$	(111	)	$	9,575
Accumulated other comprehensive loss	(4,348		)	11			(4,337		)	(4,642		)	12			(4,630		)
Xerox shareholders' equity	4,803			(94		)	4,709			9,074			(99		)	8,975
Total Equity	4,841			(94		)	4,747			9,117			(99		)	9,018
Total Liabilities and Equity	18,145			(94		)	18,051			25,541			(99		)	25,442

Revised Consolidated Statements of Cash Flows from Operations

The revision did not have an impact on the company’s operating cash flows. The following table reconciles selected lines from the company’s fiscal years of 2016 and 2015 Consolidated Statements of Cash Flows from the previously reported amounts to the revised amounts:



	Year Ended December 31, 2016									Year Ended December 31, 2015
	As Reported			Adjustment			As Revised			As Reported			Adjustment			As Revised
Cash Flows from Operating Activities:
Net (Loss) Income	$	(466	)	$	6		$	(460	)	$	492		$	(26	)	$	466
Income from Continuing Operations	627			6			633			866			(26		)	840

Undistributed equity in net income of unconsolidated affiliates	$	(69	)	$	(6	)	$	(75	)	$	(79	)	$	26		$	(53	)

Segment Reporting

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Segment and Geographic Area Reporting

Segment Discussion

Following the separation of the BPO business, we realigned our operations to better manage the business and serve our customers and the markets in which we operate. In 2017 we transitioned to a geographic focus and are primarily organized from a sales perspective on the basis of “go-to-market” sales channels. These sales channels are structured to serve a range of customers for our products and services. As a result of this transition and change in structure, we concluded that we have one operating and reportable segment - the design, development and sale of document management systems and solutions. Our chief executive officer was identified as the chief operating decision maker (“CODM”). All of the company’s activities are interrelated, and each activity is dependent upon and supportive of the other, including product development, supply chain and back-office support services. In addition, all significant operating decisions, by management and the Board, are largely based upon an analysis of Xerox on a total company basis, including assessments related to the Company’s incentive compensation plans.

Geographic Area Data

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⁾
	2017		2016		2015		2017		2016
United States	$	6,064	$	6,403	$	6,734	$	770	$	824
Europe	2,697		2,861		3,155		355		359
Other areas	1,504		1,507		1,576		167		178
Total Revenues and Long-Lived Assets	$	10,265	$	10,771	$	11,465	$	1,292	$	1,361

_____________


(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.

Acquisitions

12 Months Ended

Dec. 31, 2017

Business Combinations [Abstract]

Acquisitions

2017 Acquisitions

During 2017, Xerox focused on increasing its Small and Mid-sized (SMB) coverage through resellers and partners (including multi-brand dealers) and continued distribution acquisitions. During 2017, distribution acquisitions totaled $87 and included the acquisition of MT Business Technologies, Inc. (MT Business), an Ohio-based multi-brand dealer, and two smaller multi-brand dealers in Iowa and North and South Carolina. MT Business provides office equipment, productivity solutions and managed print services to organizations throughout Ohio and southeastern Michigan. The acquisition of MT Business opens new market opportunities in Ohio, including large metropolitan areas such as Cleveland and Columbus.

2017 Summary

Our 2017 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 2017 acquisitions contributed aggregate revenues of approximately $54 to our 2017 total revenues from their respective acquisition dates. The purchase prices for these acquisitions were all cash and were primarily allocated to intangible assets and goodwill based on management's estimates which included, in certain situations, third-party valuations. The primary elements that generated the goodwill are the value of synergies and the acquired assembled workforce. Of the goodwill recorded in 2017, 100% is expected to be deductible for tax purposes. Refer to Note 11 - Goodwill and Intangible Assets, Net for additional information.

The following table summarizes the purchase price allocations for our 2017 acquisitions as of the acquisition dates:



	Weighted-Average Life (Years)	Total 2017 Acquisitions
Accounts/finance receivables		$	8
Intangible assets:
Customer relationships	10	17
Trademarks	20	10
Non-compete agreements	3	1
Goodwill		44
Other assets		18
Total Assets Acquired		98
Liabilities assumed		(11		)
Total Purchase Price		$	87

2016 and 2015 Acquisitions

Acquisitions in 2016 and 2015 were $30 and $13, in cash, respectively, and related to the acquisition of two equipment dealers in 2016 and two in 2015 as part of the continued strategy to expand distribution in under-represented markets as part of our Global Imaging Systems network.

2016 and 2015 Summary

All of our 2016 and 2015 acquisitions resulted in 100% ownership of the acquired companies. The operating results of the 2016 and 2015 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 these 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. Refer to Note 11 - Goodwill and Intangible Assets, Net for additional information. Our 2016 acquisitions contributed aggregate revenues from their respective acquisition dates of approximately $26 and $14 to our 2017 and 2016 total revenues, respectively. Our 2015 acquisitions contributed aggregate revenues from their respective acquisition dates of approximately $10, $10 and $3 to our 2017, 2016 and 2015 total revenues, respectively.

Divestitures

12 Months Ended

Dec. 31, 2017

Discontinued Operations and Disposal Groups [Abstract]

Divestitures

Discontinued Operations

Business Process Outsourcing (BPO)

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 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.

We incurred total separation costs of $9 and $159 in 2017 and 2016, respectively, and these costs are included in Loss from discontinued operations, net of tax, in the accompanying Consolidated Statements of Income (Loss). 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.

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 were not material.

In connection with the Separation, Conduent made a net distribution to Xerox of approximately $1.8 billion 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 was excluded from the Cash and cash equivalents and Total Debt at December 31, 2016, respectively, and was reported in Current Assets and Current Liabilities of discontinued operations at December 31, 2016, respectively. Interest expense associated with this borrowing incurred during 2016 was included in Loss from discontinued operations, net of tax. Xerox used the balance of the proceeds received as well as cash on hand to repay $1.0 billion of Senior Notes that came due in the first quarter 2017. Refer to Note 14 - 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.

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.

Summarized financial information for our Discontinued Operations is as follows:



	Year Ended December 31, 2017
	Conduent			ITO		Total
Revenue	$	—		$	—	$	—

Loss from operations⁽¹⁾	$	(9	)	$	—	$	(9	)
Loss on disposal	—			—		—
Net loss before income taxes	(9		)	—		(9		)
Income tax benefit⁽²⁾	12			—		12
Income from discontinued operations, net of tax	$	3		$	—	$	3

_____________


(1)	2017 includes $9 of Separation related costs.


(2)	Primarily reflects changes in estimates.



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

Loss from operations⁽¹⁾	$	(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	)

_____________


(1)	2016 includes $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.



	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	)

The following is a summary of selected financial information of Conduent for the years ended December 31, 2016 and 2015:



	Year Ended December 31,
	2016		2015
Cost and Expenses:
Cost of services	$	5,456	$	5,923
Other Expenses	2,065		1,192
Total Costs and Expenses	$	7,521	$	7,115

Selected amounts included in Costs and Expenses:
Depreciation of buildings and equipment	$	130	$	126
Amortization of internal use software	49		51
Amortization of product software	61		65
Amortization of acquired intangible assets	280		250
Amortization of customer contract costs	93		108
Operating lease rent expense	378		389
Defined contribution plans	35		34
Interest expense ⁽¹⁾	13		8
Goodwill impairment charge ⁽²⁾	935		—

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

_____________


(1)	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 year ended December 31, 2016 and 2015.


(2)	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:



	December 31, 2016
Cash and cash equivalents	$	390
Accounts receivable, net	1,287
Other current assets	239
Total current assets of discontinued operations	1,916
Land, buildings and equipment, net	283
Intangible assets, net	1,144
Goodwill	3,889
Other long-term assets	477
Total long-term assets of discontinued operations	5,793
Total Assets of Discontinued Operations	$	7,709

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

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 of $142, Retained Earnings of $3,829 and Accumulated other comprehensive loss of $526 in the accompanying Consolidated Balance Sheet and Consolidated Statements of Shareholders' Equity as of December 31, 2016.

Other Divestitures

Xerox Research Centre Europe in Grenoble

In August 2017, we completed the sale of the Xerox Research Centre Europe in Grenoble, France to Naver Corporation (Naver). The selling price was approximately $23 and included a license agreement and the transfer of liabilities. The net assets and expenses of the sale were approximately $10, including approximately $6 of Goodwill, resulting in a pre-tax gain of $13 ($4 after-tax), which is included in Other expenses, net in the Consolidated Statements of Income (Loss) for the year ended December 31, 2017. The sale included the transfer of approximately 80 researchers and administrative staff who became part of Naver.

Accounts Receivables, Net

12 Months Ended

Dec. 31, 2017

Accounts Receivables, Net

Accounts Receivable, Net

Accounts receivable, net were as follows:



	December 31,
	2017			2016
Invoiced	$	1,048		$	651
Accrued	368			374
Allowance for doubtful accounts	(59		)	(64		)
Accounts Receivable, Net	$	1,357		$	961

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 receivable 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. Prior to the fourth quarter 2017, we had facilities in the U.S., Canada and several countries in Europe that enabled us to sell certain accounts receivable, without recourse, to third-parties. The accounts receivable sold were generally short-term trade receivables with payment due dates of less than 60 days. In connection with the efforts of our Strategic Transformation Program to reduce costs and simplify our business processes, during the fourth quarter 2017 we terminated all accounts receivable sales arrangements in North America and all but one arrangement in Europe, which resulted in a one-time reduction in our operating cash flows. The remaining accounts receivable sales facility in Europe enables us to sell receivables associated with our distributor network on an ongoing basis without recourse. Under this remaining arrangement, we sell our entire interest in the related accounts receivable for cash and no portion of the payment is held back or deferred by the purchaser.

In the sales arrangements terminated in the fourth quarter 2017, a portion of the sales proceeds was normally held back by the purchaser and payment was deferred until collection of the related sold receivables. Our risk of loss following the sales of accounts receivable under these programs was limited to the outstanding amount deferred. These balances were included in Other current assets in the accompanying Consolidated Balance Sheets and the balance at December 31, 2016 was $48. Due to the termination of these programs in the fourth quarter 2017, there is no remaining balance deferred at December 31, 2017. We reported the collections on these balances as operating cash flows in the Consolidated Statements of Cash Flows because they were the result of an operating activity and the associated interest rate risk was considered de minimis due to their short-term nature.

Of the accounts receivable sold and derecognized from our balance sheet, $161 and $531 remained uncollected as of December 31, 2017 and 2016, respectively. Accounts receivable sales activity was as follows:



	Year Ended December 31,
	2017		2016		2015
Accounts receivable sales	$	1,733	$	2,267	$	2,142
Deferred proceeds	164		233		247
Loss on sale of accounts receivable	10		16		13

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,
	2017			2016
Gross receivables	$	4,354		$	4,380
Unearned income	(494		)	(526		)
Subtotal	3,860			3,854
Residual values	—			—
Allowance for doubtful accounts	(108		)	(110		)
Finance Receivables, Net	3,752			3,744
Less: Billed portion of finance receivables, net	112			90
Less: Current portion of finance receivables not billed, net	1,317			1,256
Finance Receivables Due After One Year, Net	$	2,323		$	2,398

Contractual maturities of our gross finance receivables as of December 31, 2017 were as follows (including those already billed of $112):



2018		2019		2020		2021		2022		Thereafter		Total
$	1,686	$	1,211	$	827	$	454	$	163	$	13	$	4,354

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 2017 and 2016. 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 $11 in 2017 as compared to $15 in 2016, 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, 2015⁽¹⁾	$	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
Provision	11			2			4			—		17
Charge-offs	(12		)	(5		)	(11		)	—		(28		)
Recoveries and other⁽³⁾	2			2			5			—		9
Balance at December 31, 2017	$	56		$	15		$	35		$	2	$	108
Finance Receivables Collectively Evaluated for Impairment:
December 31, 2016⁽⁴⁾	$	2,138		$	378		$	1,286		$	52	$	3,854
December 31, 2017⁽⁴⁾	$	2,029		$	397		$	1,362		$	72	$	3,860

_____________


(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 $108 and $110 at December 31, 2017 and 2016, 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 5%.

•

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 generally in the range of 7% to 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, 2017								December 31, 2016⁽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	$	199	$	345	$	75	$	619	$	215	$	343	$	60	$	618
Government and education	490		61		6		557		535		56		17		608
Graphic arts	84		97		141		322		135		106		106		347
Industrial	82		84		14		180		88		82		14		184
Healthcare	88		48		9		145		92		39		12		143
Other	68		98		40		206		90		106		42		238
Total United States	1,011		733		285		2,029		1,155		732		251		2,138
Finance and other services	54		42		27		123		54		43		15		112
Government and education	48		5		5		58		52		6		2		60
Graphic arts	34		35		27		96		39		37		24		100
Industrial	20		12		11		43		21		13		6		40
Other	36		25		16		77		33		25		8		66
Total Canada	192		119		86		397		199		124		55		378
France	234		226		22		482		181		222		51		454
U.K/Ireland	106		150		10		266		95		148		10		253
Central⁽¹⁾	189		149		16		354		182		148		19		349
Southern⁽²⁾	52		144		13		209		36		131		14		181
Nordic⁽³⁾	29		21		1		51		26		22		1		49
Total Europe	610		690		62		1,362		520		671		95		1,286
Other	38		28		6		72		35		15		2		52
Total	$	1,851	$	1,570	$	439	$	3,860	$	1,909	$	1,542	$	403	$	3,854

_____________


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


(2)	Italy, Greece, Spain and Portugal.


(3)	Sweden, Norway, Denmark and Finland.


(4)	The December 31, 2016 amounts have been reclassified to conform to 2017 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, 2017
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Finance and other services	$	18	$	3	$	1	$	22	$	597	$	619	$	12
Government and education	18		3		3		24		533		557		21
Graphic arts	12		1		—		13		309		322		6
Industrial	6		1		1		8		172		180		4
Healthcare	5		1		1		7		138		145		5
Other	7		1		1		9		197		206		3
Total United States	66		10		7		83		1,946		2,029		51
Canada	8		2		1		11		386		397		17
France	6		—		—		6		476		482		22
U.K./Ireland	3		—		—		3		263		266		—
Central⁽¹⁾	1		2		—		3		351		354		6
Southern⁽²⁾	4		1		1		6		203		209		6
Nordic⁽³⁾	—		—		—		—		51		51		—
Total Europe	14		3		1		18		1,344		1,362		34
Other	3		—		—		3		69		72		—
Total	$	91	$	15	$	9	$	115	$	3,745	$	3,860	$	102



	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

_____________


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


(2)	Italy, Greece, Spain and Portugal.


(3)	Sweden, Norway, Denmark and Finland.

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 continued 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 associated with these sales was $76 at December 31, 2016. During 2017, we exercised the various clean-up calls we, as the servicer, held on the sold receivables and, accordingly, repurchased the remaining balances of the previously derecognized receivables and terminated the programs. The amounts repurchased were not material.

The ultimate purchaser of the transferred receivables had 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 at December 31, 2016 and were included in Other current assets and Other long-term assets in the accompanying Consolidated Balance Sheets. Due to the repurchase of receivables during 2017, there is no remaining balance of beneficial interests at December 31, 2017. We reported collections on the beneficial interests as operating cash flows in the Consolidated Statements of Cash Flows because such beneficial interests were the result of an operating activity and the associated interest rate risk was deemed de minimis considering the weighted average life of the sold receivables was less than two years.

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, 2017

Finance Receivables, Net

Accounts Receivable, Net

Accounts receivable, net were as follows:



	December 31,
	2017			2016
Invoiced	$	1,048		$	651
Accrued	368			374
Allowance for doubtful accounts	(59		)	(64		)
Accounts Receivable, Net	$	1,357		$	961

Accounts Receivable Sales Arrangements



	Year Ended December 31,
	2017		2016		2015
Accounts receivable sales	$	1,733	$	2,267	$	2,142
Deferred proceeds	164		233		247
Loss on sale of accounts receivable	10		16		13

Finance Receivables, Net



	December 31,
	2017			2016
Gross receivables	$	4,354		$	4,380
Unearned income	(494		)	(526		)
Subtotal	3,860			3,854
Residual values	—			—
Allowance for doubtful accounts	(108		)	(110		)
Finance Receivables, Net	3,752			3,744
Less: Billed portion of finance receivables, net	112			90
Less: Current portion of finance receivables not billed, net	1,317			1,256
Finance Receivables Due After One Year, Net	$	2,323		$	2,398

Contractual maturities of our gross finance receivables as of December 31, 2017 were as follows (including those already billed of $112):



2018		2019		2020		2021		2022		Thereafter		Total
$	1,686	$	1,211	$	827	$	454	$	163	$	13	$	4,354

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, 2015⁽¹⁾	$	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
Provision	11			2			4			—		17
Charge-offs	(12		)	(5		)	(11		)	—		(28		)
Recoveries and other⁽³⁾	2			2			5			—		9
Balance at December 31, 2017	$	56		$	15		$	35		$	2	$	108
Finance Receivables Collectively Evaluated for Impairment:
December 31, 2016⁽⁴⁾	$	2,138		$	378		$	1,286		$	52	$	3,854
December 31, 2017⁽⁴⁾	$	2,029		$	397		$	1,362		$	72	$	3,860

_____________


(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 $108 and $110 at December 31, 2017 and 2016, respectively.

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

•



	December 31, 2017								December 31, 2016⁽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	$	199	$	345	$	75	$	619	$	215	$	343	$	60	$	618
Government and education	490		61		6		557		535		56		17		608
Graphic arts	84		97		141		322		135		106		106		347
Industrial	82		84		14		180		88		82		14		184
Healthcare	88		48		9		145		92		39		12		143
Other	68		98		40		206		90		106		42		238
Total United States	1,011		733		285		2,029		1,155		732		251		2,138
Finance and other services	54		42		27		123		54		43		15		112
Government and education	48		5		5		58		52		6		2		60
Graphic arts	34		35		27		96		39		37		24		100
Industrial	20		12		11		43		21		13		6		40
Other	36		25		16		77		33		25		8		66
Total Canada	192		119		86		397		199		124		55		378
France	234		226		22		482		181		222		51		454
U.K/Ireland	106		150		10		266		95		148		10		253
Central⁽¹⁾	189		149		16		354		182		148		19		349
Southern⁽²⁾	52		144		13		209		36		131		14		181
Nordic⁽³⁾	29		21		1		51		26		22		1		49
Total Europe	610		690		62		1,362		520		671		95		1,286
Other	38		28		6		72		35		15		2		52
Total	$	1,851	$	1,570	$	439	$	3,860	$	1,909	$	1,542	$	403	$	3,854

_____________


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


(2)	Italy, Greece, Spain and Portugal.


(3)	Sweden, Norway, Denmark and Finland.


(4)	The December 31, 2016 amounts have been reclassified to conform to 2017 presentation.



	December 31, 2017
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Finance and other services	$	18	$	3	$	1	$	22	$	597	$	619	$	12
Government and education	18		3		3		24		533		557		21
Graphic arts	12		1		—		13		309		322		6
Industrial	6		1		1		8		172		180		4
Healthcare	5		1		1		7		138		145		5
Other	7		1		1		9		197		206		3
Total United States	66		10		7		83		1,946		2,029		51
Canada	8		2		1		11		386		397		17
France	6		—		—		6		476		482		22
U.K./Ireland	3		—		—		3		263		266		—
Central⁽¹⁾	1		2		—		3		351		354		6
Southern⁽²⁾	4		1		1		6		203		209		6
Nordic⁽³⁾	—		—		—		—		51		51		—
Total Europe	14		3		1		18		1,344		1,362		34
Other	3		—		—		3		69		72		—
Total	$	91	$	15	$	9	$	115	$	3,745	$	3,860	$	102



	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

_____________


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


(2)	Italy, Greece, Spain and Portugal.


(3)	Sweden, Norway, Denmark and Finland.

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

Inventories and Equipment on Operating Leases, Net [Abstract]

Inventories and Equipment on Operating Leases, Net

12 Months Ended

Dec. 31, 2017

Inventories and Equipment on Operating Leases, Net

The following is a summary of Inventories by major category:



	December 31,
	2017		2016
Finished goods	$	777	$	713
Work-in-process	49		47
Raw materials	89		81
Total Inventories	$	915	$	841

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,
	2017			2016
Equipment on operating leases	$	1,546		$	1,468
Accumulated depreciation	(1,092		)	(993		)
Equipment on Operating Leases, Net	$	454		$	475

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:



2018		2019		2020		2021		2022		Thereafter
$	313	$	208	$	131	$	66	$	24	$	2

Total contingent rentals on operating leases, consisting principally of usage charges in excess of minimum contracted amounts, for the years ended December 31, 2017, 2016 and 2015 amounted to $119, $132 and $139, respectively.

Land, Buildings, Equipment and Software, Net

12 Months Ended

Dec. 31, 2017

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)	2017			2016
Land		$	22		$	20
Building and building equipment	25 to 50	909			892
Leasehold improvements	Varies	192			238
Plant machinery	5 to 12	1,214			1,225
Office furniture and equipment	3 to 15	651			657
Other	4 to 20	54			70
Construction in progress		30			33
Subtotal		3,072			3,135
Accumulated depreciation		(2,443		)	(2,475		)
Land, Buildings and Equipment, Net		$	629		$	660

Depreciation expense and operating lease rent expense were as follows:



	Year Ended December 31,
	2017		2016		2015
Depreciation expense	$	136	$	148	$	151
Operating lease expense	161		157		164

We lease buildings and equipment, substantially all of which are accounted for as operating leases. Capital leased assets were $35 and $31 at December 31, 2017 and 2016, respectively.

Future minimum operating lease commitments that have initial or remaining non-cancelable lease terms in excess of one year at December 31, 2017 were as follows:



2018		2019		2020		2021		2022		Thereafter
$	127	$	100	$	77	$	55	$	42	$	48

Internal Use Software



	Year Ended December 31,
Additions to:	2017		2016		2015
Internal use software	$	36	$	45	$	64



	December 31,
Capitalized costs, net:	2017		2016
Internal use software	$	209	$	218

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

Investment in Affiliates, at Equity

12 Months Ended

Dec. 31, 2017

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,
	2017		2016
Fuji Xerox	$	1,366	$	1,219
Other	38		75
Investments in Affiliates, at Equity	$	1,404	$	1,294

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



	Year Ended December 31,
	2017		2016		2015
Fuji Xerox	$	102	$	114	$	91
Other	13		13		18
Total Equity in Net Income of Unconsolidated Affiliates	$	115	$	127	$	109

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 $1,366 at December 31, 2017, differs from our implied 25% interest in the underlying net assets, or $1,455, 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.

Refer to Note 2 - Correction of Fuji Xerox Misstatement in Prior Period Financial Statements for additional information regarding the results of a review of accounting practices at Fuji Xerox and the associated impact of adjustments from that review on previously reported Equity in net income of unconsolidated affiliates. The 2016 and 2015 summarized financial information below for Fuji Xerox has likewise been revised accordingly to reflect the impact of those adjustments.

Summarized financial information for Fuji Xerox is as follows:



	Year Ended December 31,
	2017		2016		2015
Summary of Operations
Revenues	$	9,638	$	10,149	$	9,832
Costs and expenses	9,072		9,460		9,225
Income before income taxes	566		689		607
Income tax expense	144		206		218
Net Income	422		483		389
Less: Net income - noncontrolling interests	5		8		7
Net Income - Fuji Xerox	$	417	$	475	$	382
Balance Sheet
Assets:
Current assets	$	4,315	$	4,313	$	4,350
Long-term assets	4,488		4,516		4,777
Total Assets	$	8,803	$	8,829	$	9,127
Liabilities and Equity:
Short-term debt	$	428	$	681	$	780
Other current liabilities	2,079		2,001		2,011
Long-term debt	76		283		584
Other long-term liabilities	369		587		521
Noncontrolling interests	33		31		31
Fuji Xerox shareholders' equity	5,818		5,246		5,200
Total Liabilities and Equity	$	8,803	$	8,829	$	9,127

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



Financial Statement	Exchange Basis	2017	2016	2015
Summary of Operations	Weighted average rate	112.14	108.76	120.97
Balance Sheet	Year-end rate	112.87	116.53	120.49

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 Services, maintenance and rentals revenues in the Consolidated Statements of Income (Loss). 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,
	2017		2016		2015
Dividends received from Fuji Xerox	$	46	$	47	$	51
Royalty revenue earned	103		110		105
Inventory purchases from Fuji Xerox	1,585		1,641		1,728
Inventory sales to Fuji Xerox	58		80		108
R&D payments received from Fuji Xerox	1		1		1
R&D payments paid to Fuji Xerox	14		13		7

As of December 31, 2017 and 2016, net amounts due to Fuji Xerox were $331 and $273, respectively.

Refer to Note 24 - Subsequent Event for additional information about the agreement between Fujifilm and the Company to combine the Company and Fuji Xerox.

Goodwill and Intangible Assets, Net

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets, Net

Goodwill

The following table presents the changes in the carrying amount of goodwill:



	Total
Balance at December 31, 2015	$	3,951
Foreign currency translation	(183		)
Acquisitions:
Imagetek	10
Other	9
Balance at December 31, 2016	$	3,787
Foreign currency translation	105
Acquisitions:
MT Business	33
Other	11
Divestiture⁽¹⁾	(6		)
Balance at December 31, 2017	$	3,930

_____________


(1)	Relates to the sale of Xerox Research Centre Europe in Grenoble, France to Naver. Refer to Note 5 - Divestitures for additional information regarding this divestiture.

Intangible Assets, Net

Net intangible assets were $268 at December 31, 2017. Intangible assets were comprised of the following:



		December 31, 2017						December 31, 2016
	Weighted Average Amortization	Gross Carrying Amount		Accumulated Amortization		Net Amount		Gross Carrying Amount		Accumulated Amortization		Net Amount
Customer relationships	10 years	$	319	$	236	$	83	$	508	$	410	$	98
Distribution network	25 years	123		89		34		123		84		39
Trademarks	20 years	261		120		141		250		107		143
Technology and non-compete	14 years	16		6		10		15		5		10
Total Intangible Assets		$	719	$	451	$	268	$	896	$	606	$	290

Amortization expense related to intangible assets was $53, $58, and $60 for the years ended December 31, 2017, 2016 and 2015, respectively. Excluding the impact of additional acquisitions, amortization expense is expected to approximate $51 in 2018, $50 in 2019, $38 in 2020 and $19 in each of the years 2021 and 2022.

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, 2017

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, 2017 is as follows:



	Severance and Related Costs			Lease Cancellation and Other Costs			Asset Impairments⁽²⁾			Total
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
Restructuring provision	225			4			7			236
Reversals of prior accruals	(29		)	(6		)	—			(35		)
Net Current Period Charges⁽¹⁾	196			(2		)	7			201
Charges against reserve and currency	(192		)	(20		)	(7		)	(219		)
Balance at December 31, 2017	$	108		$	1		$	—		$	109

_____________


(1)	Represents net amount recognized within the Consolidated Statements of Income (Loss) 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,
	2017			2016			2015
Charges against reserve and currency	$	(219	)	$	(122	)	$	(92	)
Asset impairments	7			—			7
Effects of foreign currency and other non-cash items	(12		)	4			6
Restructuring Cash Payments	$	(224	)	$	(118	)	$	(79	)

Supplementary Financial Information

12 Months Ended

Dec. 31, 2017

Supplemental Financial Information [Abstract]

Supplementary Financial Information

The components of Other assets and liabilities were as follows:



	December 31,
	2017		2016
Other Current Assets
Income taxes receivable	$	43	$	50
Royalties, license fees and software maintenance	18		21
Restricted cash	1		92
Prepaid expenses	43		45
Derivative instruments	2		88
Deferred purchase price from sales of accounts receivables	—		48
Beneficial interests - sales of finance receivables	—		8
Advances and deposits	27		15
Other	102		125
Due from Conduent	—		127
Total Other Current Assets	$	236	$	619
Other Current Liabilities
Income taxes payable	$	7	$	45
Other taxes payable	91		78
Interest payable	43		55
Restructuring reserves	106		121
Derivative instruments	25		39
Product warranties	6		7
Dividends payable	73		91
Distributor and reseller rebates/commissions	175		120
Servicer liabilities	—		62
Unearned income and other revenue deferrals	170		187
Other	211		290
Total Other Current Liabilities	$	907	$	1,095
Other Long-term Assets
Income taxes receivable	$	10	$	14
Prepaid pension costs	193		17
Derivative instruments	1		4
Net investment in TRG	—		126
Internal use software, net	209		218
Product software, net	—		8
Restricted cash	74		87
Debt issuance costs, net	5		3
Customer contract costs, net	10		7
Beneficial interest - sales of finance receivables	—		16
Deferred compensation plan investments	18		15
Other	162		168
Total Other Long-term Assets	$	682	$	683
Other Long-term Liabilities
Deferred taxes	$	42	$	42
Income taxes payable	21		16
Environmental reserves	9		9
Restructuring reserves	3		6
Other	131		120
Total Other Long-term Liabilities	$	206	$	193

Restricted Cash

As more fully discussed in Note 19 - 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 6 - Accounts Receivable, Net and Note 7 - 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,
	2017		2016
Tax and labor litigation deposits in Brazil	$	72	$	85
Escrow and cash collections related to receivable sales	—		62
Other restricted cash	3		32
Total Restricted Cash	$	75	$	179

Net Investment in TRG

In December 2017, we received $127 representing the final payment on the performance-based instrument we received from our 1997 sale of The Resolution Group (TRG). The final payment was reported as Other investing cash flows in the Consolidated Statements of Cash Flows. The remaining liabilities associated with our discontinued operations of $13, were reclassified to Other Current and Long-Term Liabilities. The funds received from this instrument were partially used to fund an additional contribution of approximately $105 (GBP 80 million) to our U.K. Pension Plan for salaried employees. The contribution was accordingly reported in operating cash flows in the Consolidated Statements of Cash Flows.

Due from Conduent

The balance Due from Conduent at December 31, 2016 includes the following amounts:



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

In January 2017, as provided for in the Separation Agreement, we received a distribution from Conduent of $161 representing the final adjustment required to set Conduent's cash balance at $225 as of the Separation. The cash receipt was reported in Other financing, net cash flows in the Consolidated Statements of Cash Flows as it represented an adjustment to our Distribution of Conduent. The income tax payable represented the final adjustment for income tax payments between the two companies for their consolidated 2016 tax returns, which were the last returns 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. The balance due to Conduent was substantially settled in 2017 and included in income tax payments for the year ended December 31, 2017.

Refer to Note 5 - Divestitures for additional information regarding discontinued operations.

Debt

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

Debt

Short-term borrowings were as follows:



	December 31,
	2017		2016
Notes Payable	$	6	$	4
Current maturities of long-term debt	276		1,007
Total Short-term Debt	$	282	$	1,011

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 Income (Loss).

Long-term debt was as follows:



					December 31,
	Stated Rate		Weighted Average Interest Rates at December 31, 2017⁽³⁾		2017			2016
Xerox Corporation
Senior Notes due 2017⁽¹⁾					$	—		$	500
Senior Notes due 2017⁽¹⁾					—			500
Notes due 2018	0.57	%	0.57	%	1			1
Senior Notes due 2018	6.35	%	6.09	%	265			1,000
Senior Notes due 2019	2.75	%	2.58	%	406			500
Senior Notes due 2019	5.63	%	5.48	%	554			650
Senior Notes due 2020	2.80	%	2.50	%	313			400
Senior Notes due 2020	3.50	%	3.47	%	362			400
Senior Notes due 2020	2.75	%	2.67	%	375			400
Senior Notes due 2021	4.50	%	5.39	%	1,062			1,062
Senior Notes due 2022	4.07	%	4.07	%	300			—
Senior Notes due 2023	3.63	%	3.64	%	1,000			—
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 - Notes					$	5,538		$	6,313
Other Debt
Capital lease obligations			4.11	%	$	35		$	31
Other					—			1
Subtotal - Other Debt					$	35		$	32

Principal debt balance					$	5,573		$	6,345
Unamortized discount					(35		)	(43		)
Debt issuance costs					(32		)	(21		)
Fair value adjustments⁽²⁾
Terminated swaps					4			27
Current swaps					1			4
Less: current maturities					(276		)	(1,007		)
Total Long-term Debt					$	5,235		$	5,305

_____________


(1)	Senior Notes maturing in 2017 were paid in part from funds received in the distribution from Conduent as part of the Separation. Refer to Note 5 - 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:



2018⁽¹⁾		2019		2020		2021		2022		Thereafter		Total
$	274	$	968	$	1,059	$	1,069	$	301	$	1,902	$	5,573

_____________


(1)	Quarterly long-term debt maturities from continuing operations for 2018 are $2, $268, $2 and $2 for the first, second, third and fourth quarters, respectively.

Senior Notes

In September 2017, we issued $1.0 billion of 3.625% Senior Notes due March 2023 (the "2023 Senior Notes") at 99.920% of par resulting in aggregate net proceeds of approximately $992. Interest on these Senior Notes is payable semi-annually. Debt issuance costs of approximately $8 were paid and deferred in connection with the issuance and will be amortized over the term of the Senior Notes. The debt proceeds were used for general corporate purposes, which included a voluntary cash contribution of $500 to our U.S. defined benefit pension plans as well as the early redemption of certain debt.

In October 2017, we completed the early redemption of $475 of the remaining $740 of 6.35% Senior Notes due May 2018. The redemption resulted in a net loss of $7 being recorded in the fourth quarter 2017.

Refer to Note 17 - Employee Benefit Plans for further information regarding the voluntary contribution made to our U.S. defined benefit pension plans.

Credit Facility

In August 2017, we entered into an Amended and Restated Credit Agreement that included a reduction in the size of our unsecured revolving Credit Facility from $2.0 billion to $1.8 billion and an extension in the maturity date from March 2019 to August 2022. The amended and restated Credit Facility also included a reduction in the letter of credit sub-facility from $300 to $250. The accordion feature of our previous $2.0 billion Credit Facility, which allowed us to increase (from time to time, with willing lenders) the overall size of the facility by $750, was retained. We also have the right to request a one year extension on any anniversary of the amendment date.

We deferred $5 of debt issuance costs in connection with this amendment, which includes approximately $2 of unamortized deferred debt issuance costs associated with the existing Credit Facility. The write-off of debt issuance costs associated with lenders who reduced their participation in the amended and restated Credit Facility were not material. At December 31, 2017 and 2016, we had no outstanding borrowings or letters of credit under the amended and restated Credit Facility.

The amended and restated $1.8 billion Credit Agreement also includes revisions to pricing as well as certain financial covenants as follows:

Borrowings under the amended and restated Credit Facility bear interest at our choice, at either (a) a Base Rate as defined in the new Credit Facility agreement, plus a spread that varies between 0.000% and 0.700% depending on our credit rating at the time of borrowing, or (b) LIBOR plus an all-in spread that varies between 1.000% and 1.700% depending on our credit rating at the time of borrowing. Based on our credit rating as of December 31, 2017, the applicable all-in spreads for the Base Rate and LIBOR borrowing were 0.175% and 1.175%, respectively.

An annual facility fee is payable to each lender in the amended and restated Credit Facility at a rate that varies between 0.125% and 0.300% depending on our credit rating. Based on our credit rating as of December 31, 2017 the applicable rate is 0.200%.

The amended and restated 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, both as defined in the amended and restated Credit Facility) of 4.25x.


(b)	Minimum interest coverage ratio (a quarterly test that is calculated as consolidated EBITDA divided by consolidated interest expense, both as defined in the amended and restated Credit Facility) may not be less than 3.00x.


(c)	Limitations on (i) liens securing debt, (ii) mergers, consolidations and liquidations, (iii) limitations on debt incurred by certain subsidiaries, (iv) sale of all or substantially all our assets, (v) payment restrictions affecting subsidiaries, (vi) non-arm's length transactions with affiliates, (vii) change in nature of business, (viii) actions that may violate OFAC and anti-corruption laws.

The amended and restated Credit Facility contains various events of default that are substantially similar to those included in the $2.0 billion Credit Facility, the occurrence of which could result in termination of the lenders' commitments to lend and the acceleration of all our obligations under the amended and restated Credit Facility. These events of default include, without limitation: (i) payment defaults, (ii) breaches of covenants under the amended and restated 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.

On February 15, 2018, we entered into an Amendment No. 1 to the Credit Agreement, which among other things, modifies the “change of control” provisions of the Credit Agreement to permit the consummation of the Fujifilm Transactions. See Note 24 - Subsequent Event for additional information regarding the Fujifilm Transactions.

Debt Exchange

In March 2017, we completed a private offering to exchange portions of certain outstanding Senior Notes due 2018 through 2020 (collectively, the old notes), listed below, for $300 of new Senior Notes due 2022 and $322 in cash consideration, which includes a $22 exchange premium.

The following principal amounts of each series of old notes were validly tendered and subsequently cancelled:



Maturity Date	Coupon		Principal Amount Exchanged		4.07% Senior Notes Due March 2022		Cash Consideration
Senior Notes due May 15, 2018	6.350	%	$	260	$	130	$	143
Senior Notes due March 15, 2019	2.750	%	94		47		48
Senior Notes due December 15, 2019	5.625	%	96		48		56
Senior Notes due May 15, 2020	2.800	%	87		44		43
Senior Notes due August 20, 2020	3.500	%	38		19		20
Senior Notes due September 1, 2020	2.750	%	25		12		12
Total			$	600	$	300	$	322

The new Senior Notes bear a fixed coupon rate of 4.07% and become due in March 2022. There were no other significant changes to the terms between the old and new Senior Notes. We recorded a loss of approximately $9 for the exchange premium and other carrying value adjustments related to the portion of the old notes exchanged for cash. However, the old notes exchanged for the new Senior Notes were accounted for as a debt modification and therefore approximately $9 related to the exchange premium and other carrying value adjustments for that portion was carried over as an adjustment to the carrying value of new Senior Notes and is expected to be accreted over the term of the new Senior Notes. Transaction costs incurred on the exchange and paid to third parties of $4 were expensed as part of the loss.

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 $1.8 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, 2017 and 2016.

Interest

Interest paid on our short-term and long-term debt amounted to $268, $352 and $365 for the years ended December 31, 2017, 2016 and 2015, respectively.



	Year Ended December 31,
	2017		2016		2015
Interest paid - continuing operations	$	268	$	332	$	356
Interest paid - discontinued operations	—		20		9
Total interest paid on debt	$	268	$	352	$	365

Interest expense and interest income was as follows:



	Year Ended December 31,
	2017		2016		2015
Interest expense⁽¹⁾	$	252	$	309	$	346
Interest income⁽²⁾	302		330		352

_____________


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


(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, 2017

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 2017, 2016 and 2015, the amortization of these fair value adjustments reduced interest expense by $13, $19 and $22, respectively, and we expect to record a net decrease in interest expense of $4 in future years through 2022.

Fair Value Hedges

As of December 31, 2017 and 2016, pay variable/received fixed interest rate swaps with notional amounts of $300 and $300, respectively, and net asset fair value of $1 and $4, 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 2017 or 2016.

The following is a summary of our fair value hedges at December 31, 2017:



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	$	1	2.80	%	4.50	%	Libor	2021

Foreign Exchange Risk Management

We are 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, 2017, we had outstanding forward exchange and purchased option contracts with gross notional values of $1,788, with terms of less than 12 months. Approximately 85% of these contracts at December 31, 2017 mature within three months, 8% in three to six months and 7% in six to twelve months.

The following is a summary of the primary hedging positions and corresponding fair values as of December 31, 2017:



Currencies Hedged (Buy/Sell)	Gross Notional Value		Fair Value Asset (Liability)⁽¹⁾
U.S. Dollar/Euro	$	406	$	(4	)
Japanese Yen/U.S. Dollar	356		(5		)
Japanese Yen/Euro	308		(9		)
Euro/U.K. Pound Sterling	263		1
Canadian Dollar/Euro	100		(4		)
Euro/Canadian Dollar	94		(2		)
U.S. Dollar/Canadian Dollar	58		—
Euro/Japanese Yen	38		—
Swiss Franc/Euro	22		—
U.S. Dollar/Russian Ruble	19		—
Euro/Danish Krone	18		—
Mexican Peso/U.S. Dollar	13		—
All Other	93		—
Total Foreign Exchange Hedging	$	1,788	$	(23	)

____________


(1)	Represents the net receivable (payable) amount included in the Consolidated Balance Sheet at December 31, 2017.

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 Income (Loss) 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 fair value of these contracts were $14 and $20 as of December 31, 2017 and December 31, 2016, 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	2017			2016
Derivatives Designated as Hedging Instruments
Foreign exchange contracts – forwards	Other current assets	$	1		$	6
	Other current liabilities	(15		)	(26		)
Interest rate swaps	Other long-term assets	1			4
	Net Designated Derivative Liability	$	(13	)	$	(16	)

Derivatives NOT Designated as Hedging Instruments
Foreign exchange contracts – forwards	Other current assets	$	1		$	82
	Other current liabilities	(10		)	(13		)
	Net Undesignated Derivative (Liability) Asset	$	(9	)	$	69

Summary of Derivatives	Total Derivative Assets	$	3		$	92
	Total Derivative Liabilities	(25		)	(39		)
	Net Derivative (Liability) Asset	$	(22	)	$	53

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 (Loss) Gain Recognized in Income	Derivative (Loss) Gain Recognized in Income								Hedged Item Gain (Loss) Recognized in Income
Derivatives in Fair Value Relationships	Location of (Loss) Gain Recognized in Income	2017			2016			2015		2017		2016		2015
Interest rate contracts	Interest expense	$	(3	)	$	(3	)	$	2	$	3	$	3	$	(2	)



	Year Ended December 31,
Derivatives in Cash Flow Hedging Relationships	Derivative (Loss) Gain Recognized in OCI (Effective Portion)							Location of Derivative Gain (Loss) Reclassified from AOCI into Income (Effective Portion)	(Loss) Gain Reclassified from AOCI to Income (Effective Portion)
Derivatives in Cash Flow Hedging Relationships	2017			2016		2015			2017			2016		2015
Foreign exchange contracts – forwards/options	$	(28	)	$	20	$	17	Cost of sales	$	(35	)	$	42	$	(23	)

No amount of ineffectiveness was recorded in the Consolidated Statements of Income (Loss) 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, 2017, net after-tax losses of $12 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 Gains (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 gains (losses) on non-designated derivative instruments:



		Year Ended December 31,
Derivatives NOT Designated as Hedging Instruments	Location of Derivative (Loss) Gain	2017			2016		2015
Foreign exchange contracts – forwards	Other expense – Currency (losses) gains, net	$	(44	)	$	172	$	17

During the three years ended December 31, 2017, we recorded Currency losses, net of $4, $13 and $2, respectively. Currency losses, 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.

Fair Value of Financial Assets and Liabilities

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

Fair Value of Financial Assets and Liabilities

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,
	2017		2016
Assets
Foreign exchange contracts - forwards	$	2	$	88
Interest rate swaps	1		4
Deferred compensation investments in mutual funds	18		15
Total	$	21	$	107
Liabilities
Foreign exchange contracts - forwards	$	25	$	39
Deferred compensation plan liabilities	19		17
Total	$	44	$	56

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, 2017				December 31, 2016
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Cash and cash equivalents	$	1,293	$	1,293	$	2,223	$	2,223
Accounts receivable, net	1,357		1,357		961		961
Short-term debt	282		283		1,011		1,015
Long-term debt	5,235		5,373		5,305		5,438

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.

Employee Benefit Plans

12 Months Ended

Dec. 31, 2017

Defined Benefit Plan [Abstract]

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
	2017			2016			2017			2016			2017			2016
Change in Benefit Obligation:
Benefit obligation, January 1	$	4,161		$	4,126		$	6,160		$	6,308		$	761		$	855
Service cost	2			4			29			31			5			6
Interest cost	226			184			158			195			28			32
Plan participants' contributions	—			—			4			4			2			1
Actuarial loss (gain)	392			114			(29		)	636			(16		)	(75		)
Currency exchange rate changes	—			—			635			(774		)	10			4
Plan Amendments/Curtailments	—			—			(4		)	—			—			—
Benefits paid/settlements	(606		)	(275		)	(246		)	(234		)	(66		)	(62		)
Other	5			8			(4		)	(6		)	(1		)	—
Benefit Obligation, December 31	$	4,180		$	4,161		$	6,703		$	6,160		$	723		$	761

Change in Plan Assets:
Fair value of plan assets, January 1	$	2,774		$	2,806		$	5,384		$	5,353		$	—		$	—
Actual return on plan assets	381			220			453			804			—			—
Employer contributions	675			24			161			154			64			61
Plan participants' contributions	—			—			4			4			2			1
Currency exchange rate changes	—			—			557			(694		)	—			—
Benefits paid/settlements	(606		)	(275		)	(246		)	(234		)	(66		)	(62		)
Other	—			(1		)	(5		)	(3		)	—			—
Fair Value of Plan Assets, December 31	$	3,224		$	2,774		$	6,308		$	5,384		$	—		$	—

Net Funded Status at December 31⁽¹⁾	$	(956	)	$	(1,387	)	$	(395	)	$	(776	)	$	(723	)	$	(761	)

Amounts Recognized in the Consolidated Balance Sheets:
Other long-term assets	$	—		$	—		$	193		$	17		$	—		$	—
Accrued compensation and benefit costs	(26		)	(24		)	(25		)	(22		)	(61		)	(63		)
Pension and other benefit liabilities	(930		)	(1,363		)	(563		)	(771		)	—			—
Post-retirement medical benefits	—			—			—			—			(662		)	(698		)
Net Amounts Recognized	$	(956	)	$	(1,387	)	$	(395	)	$	(776	)	$	(723	)	$	(761	)

_____________


(1)	Includes under-funded and unfunded plans.

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



	Pension Benefits
	U.S. Plans						Non-U.S. Plans						Retiree Health
	2017			2016			2017			2016			2017			2016
Net actuarial loss	$	1,178		$	1,094		$	1,562		$	1,741		$	22		$	37
Prior service credit	(7		)	(9		)	(28		)	(28		)	(26		)	(29		)
Total Pre-tax Loss	$	1,171		$	1,085		$	1,534		$	1,713		$	(4	)	$	8

Accumulated Benefit Obligation	$	4,179		$	4,161		$	6,483		$	5,931

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



	December 31, 2017						December 31, 2016
	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.	$	3,830	$	3,829	$	3,224	$	3,820	$	3,820	$	2,774
Non U.S.	814		799		723		4,535		4,368		4,194

Unfunded Plans:
U.S.	$	350	$	350	$	—	$	341	$	341	$	—
Non U.S.	496		485		—		445		436		—

Total Underfunded and Unfunded Plans:
U.S.	$	4,180	$	4,179	$	3,224	$	4,161	$	4,161	$	2,774
Non U.S.	1,310		1,284		723		4,980		4,804		4,194
Total	$	5,490	$	5,463	$	3,947	$	9,141	$	8,965	$	6,968

Our pension plan assets and benefit obligations at December 31, 2017 were as follows:



	Fair Value of Pension Plan Assets		Pension Benefit Obligations		Net Funded Status
U.S. funded	$	3,224	$	3,830	$	(606	)
U.S. unfunded	—		350		(350		)
Total U.S.	$	3,224	$	4,180	$	(956	)
U.K.	4,098		3,948		150
Canada	749		777		(28		)
Other	1,461		1,978		(517		)
Total	$	9,532	$	10,883	$	(1,351	)

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
	2017			2016			2015			2017			2016			2015			2017			2016			2015
Components of Net Periodic Benefit Costs:
Service cost	$	2		$	4		$	4		$	29		$	31		$	32		$	5		$	6		$	7
Interest cost⁽¹⁾	226			184			80			158			195			203			28			32			34
Expected return on plan assets⁽²⁾	(227		)	(190		)	(79		)	(221		)	(249		)	(284		)	—			—			—
Recognized net actuarial loss	21			26			24			79			65			70			1			2			1
Amortization of prior service credit	(2		)	(2		)	(2		)	(4		)	(3		)	4			(4		)	(5		)	(18		)
Recognized settlement loss	133			65			88			2			1			1			—			—			—
Recognized curtailment gain	—			—			—			(2		)	—			—			—			—			(22		)
Defined Benefit Plans	153			87			115			41			40			26			30			35			2
Defined contribution plans	25			30			33			29			31			33			n/a			n/a			n/a
Net Periodic Benefit Cost	178			117			148			70			71			59			30			35			2

Other changes in plan assets and benefit obligations recognized in Other Comprehensive Income:
Net actuarial (gain) loss	238			84			(74		)	(273		)	76			204			(16		)	(75		)	(4		)
Prior service credit	—			—			—			(1		)	—			(16		)	—			—			(32		)
Amortization of net actuarial loss	(154		)	(92		)	(112		)	(81		)	(66		)	(71		)	(1		)	(2		)	(1		)
Amortization of net prior service credit	2			2			2			4			3			(4		)	4			5			18
Curtailment gain	—			—			—			—			—			—			—			—			22
Total Recognized in Other Comprehensive Income	86			(6		)	(184		)	(351		)	13			113			(13		)	(72		)	3
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income	$	264		$	111		$	(36	)	$	(281	)	$	84		$	172		$	17		$	(37	)	$	5

_____________


(1)	Interest cost for Pension Benefits includes interest expense on non-TRA obligations of $257, $296 and $311 and interest expense (income) directly allocated to TRA participant accounts of $127, $83 and $(25) for the years ended December 31, 2017, 2016 and 2015, respectively.


(2)	Expected return on plan assets includes expected investment income on non-TRA assets of $321, $356 and $388 and actual investment income (loss) on TRA assets of $127, $83 and $(25) for the years ended December 31, 2017, 2016 and 2015, 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 $(83) and $6, respectively, excluding amounts that may be recognized through settlement losses. The 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 is $3 and no amount is expected to be amortized for net actuarial loss.

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 2017 and 2016 measurement dates, the global pension plan assets were $9,532 and $8,158, 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, 2017
	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	$	2	$	—		$	—	$	—	$	2		$	686	$	—	$	—	$	—	$	686
Equity Securities:
U.S.	104		—			—		31		135			310		24		—		—		334
International	134		—			—		52		186			441		676		—		127		1,244
Fixed Income Securities:
U.S. treasury securities	—		384			—		—		384			—		42		—		—		42
Debt security issued by government agency	—		127			—		—		127			—		1,938		—		—		1,938
Corporate bonds	—		1,866			—		—		1,866			—		784		—		—		784
Asset backed securities	—		—			—		—		—			—		—		—		—		—
Derivatives	—		(20		)	—		—		(20		)	—		74		—		—		74
Real estate	24		—			—		11		35			—		—		137		176		313
Private equity/venture capital	—		—			—		433		433			—		58		7		662		727
Guaranteed insurance contracts	—		—			—		—		—			—		—		100		—		100
Other⁽²⁾	33		—			—		43		76			6		60		—		—		66
Total Fair Value of Plan Assets	$	297	$	2,357		$	—	$	570	$	3,224		$	1,443	$	3,656	$	244	$	965	$	6,308

_____________


(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 $33 U.S. and $15 Non-U.S., respectively, such as due to/from broker, interest receivables and accrued expenses.



	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 (liabilities) assets of $15 U.S. and $6 Non-U.S., respectively, such as due to/from broker, interest receivables and accrued expenses.

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, 2015	$	17		$	145		$	4		$	120		$	269
Purchases	—			1			2			2			5
Sales	(3		)	(13		)	(1		)	(12		)	(26		)
Realized gains	—			6			—			1			7
Unrealized losses	(2		)	(5		)	(4		)	(3		)	(12		)
Currency translation	—			(13		)	5			(4		)	(12		)
Balance at December 31, 2016	$	12		$	121		$	6		$	104		$	231
Purchases	—			1			—			—			1
Transfers out of Level 3	(7		)	—			—			—			—
Sales	(5		)	—			—			(2		)	(2		)
Realized losses	(9		)	(1		)	—			—			(1		)
Unrealized gains (losses)	9			7			(16		)	(15		)	(24		)
Currency translation	—			9			17			13			39
Balance at December 31, 2017	$	—		$	137		$	7		$	100		$	244

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:



	2017		2016
	U.S.	Non-U.S.	U.S.	Non-U.S.
Equity investments	12%	24%	30%	28%
Fixed income investments	73%	45%	48%	45%
Real estate	3%	5%	6%	5%
Private equity/venture capital	6%	12%	8%	9%
Other	6%	14%	8%	13%
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,
	2017		Estimated 2018
U.S. Plans	$	675	$	76
Non-U.S. Plans	161		116
Total	$	836	$	192

Retiree Health	$	64	$	62

The 2017 U.S. pension plan contributions of $675 include $650 contributed to our domestic tax-qualified defined benefit plans, which was comprised of $15 to meet the minimum funding requirements and $635 of additional voluntary contributions. The original estimate of 2017 voluntary contributions to our U.S. pension plans of $135 was increased by $500 to $635 as a result of funding provided from a Senior Note offering in the third quarter 2017. Refer to Note 14 - Debt for further information regarding the issuance of the Senior Notes.

There are no contributions required in 2018 for our U.S. tax-qualified defined benefit plans to meet the minimum funding requirements. However, our estimated 2018 contributions include $50 of voluntary contributions to these plans.

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
2018	$	528	$	241	$	769	$	62
2019	301		246		547		60
2020	312		252		564		58
2021	293		260		553		57
2022	315		266		581		55
Years 2023-2027	1,456		1,436		2,892		239

Assumptions

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



	Pension Benefits
	2017				2016				2015
	U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.
Discount rate	3.6	%	2.3	%	4.0	%	2.5	%	4.3	%	3.3	%
Rate of compensation increase	0.2	%	2.6	%	0.2	%	2.6	%	0.2	%	2.7	%



	Retiree Health
	2017		2016		2015
Discount rate	3.5	%	3.9	%	4.1	%

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



	Pension Benefits
	2018				2017				2016				2015
	U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.
Discount rate	3.6	%	2.3	%	4.0	%	2.5	%	4.3	%	3.3	%	3.9	%	3.1	%
Expected return on plan assets	5.8	%	3.8	%	7.0	%	4.1	%	7.5	%	4.8	%	7.5	%	5.2	%
Rate of compensation increase	0.2	%	2.6	%	0.2	%	2.6	%	0.2	%	2.7	%	0.2	%	2.6	%



	Retiree Health
	2018		2017		2016		2015
Discount rate	3.5	%	3.9	%	4.1	%	3.8	%

_____________

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,
	2017		2016
Health care cost trend rate assumed for next year	6.8	%	7.2	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)	4.8	%	4.8	%
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., the U.K. and Canada. In many instances, employees who participated in the 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 $54 in 2017, $61 in 2016 and $66 in 2015.

Income and Other Taxes

12 Months Ended

Dec. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Income and Other Taxes

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



	Year Ended December 31,
	2017		2016		2015
Domestic income	$	399	$	415	$	613
Foreign income	171		153		311
Income Before Income Taxes	$	570	$	568	$	924

Provision for income taxes from continuing operations were as follows:



	Year Ended December 31,
	2017			2016			2015
Federal Income Taxes
Current	$	7		$	(15	)	$	(225	)
Deferred⁽¹⁾	411			(4		)	300
Foreign Income Taxes
Current	62			71			73
Deferred	(21		)	(13		)	7
State Income Taxes
Current	13			15			(38		)
Deferred	9			8			76
Total Provision	$	481		$	62		$	193

_____________


(1)	Includes $400 estimated impact of the Tax Cuts and Jobs Act (the "Tax Act").

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,
	2017		2016		2015
U.S. federal statutory income tax rate	35.0	%	35.0	%	35.0	%
Nondeductible expenses	1.2	%	2.9	%	1.1	%
Effect of tax law changes	70.2	%	1.2	%	(1.0	)%
Change in valuation allowance for deferred tax assets	1.0	%	(1.4	)%	(1.6	)%
State taxes, net of federal benefit	2.3	%	3.0	%	2.2	%
Audit and other tax return adjustments	(8.0	)%	(4.1	)%	1.3	%
Tax-exempt income, credits and incentives	(2.9	)%	(4.0	)%	(1.8	)%
Foreign rate differential adjusted for U.S. taxation of foreign profits⁽¹⁾	(15.2	)%	(22.6	)%	(15.3	)%
Other	0.9	%	0.9	%	1.0	%
Effective Income Tax Rate	84.5	%	10.9	%	20.9	%

_____________


(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 $84, $130 and $138 in income taxes to federal, foreign and state jurisdictions during the three years ended December 31, 2017, respectively.

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



	Year Ended December 31,
	2017			2016			2015
Pre-tax income	$	481		$	62		$	193
Discontinued operations⁽¹⁾	(12		)	(250		)	(134		)
Common shareholders' equity:
Changes in defined benefit plans	63			15			59
Stock option and incentive plans, net	—			—			(18		)
Cash flow hedges	5			(8		)	15
Translation adjustments	1			2			—
Total Income Tax Expense (Benefit)	$	538		$	(179	)	$	115

_____________


(1)	Refer to Note 5 - 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, 2017, 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:



	2017			2016			2015
Balance at January 1	$	165		$	222		$	207
Additions (Reductions) related to current year	1			(9		)	36
Additions related to prior years positions	10			—			—
Reductions related to prior years positions	(46		)	(31		)	(5		)
Settlements with taxing authorities⁽¹⁾	(5		)	—			(6		)
Reductions related to lapse of statute of limitations	(3		)	(2		)	(9		)
Currency	3			(2		)	(1		)
Tax Positions assumed in Conduent Separation	—			(13		)	—
Balance at December 31	$	125		$	165		$	222

_____________


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

Included in the balances at December 31, 2017, 2016 and 2015 are $8, $5 and $9, 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 $5, $10 and $2 accrued for the payment of interest and penalties associated with unrecognized tax benefits at December 31, 2017, 2016 and 2015, 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 2007.

Tax Cuts and Jobs Act (the "Tax Act")

On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was enacted in the U.S. The Tax Act significantly revises the U.S. corporate income tax system by, among other things, lowering the U.S. statutory corporate income tax rate from 35% to 21% and implementing a territorial tax system that includes a transition tax on deemed repatriated earnings of foreign subsidiaries.

During the fourth quarter 2017, we recorded an estimated non-cash provisional charge of $400 reflecting the impact associated with the provisions of the Tax Act based on currently available information.

Foreign tax effects: The deemed repatriation tax is based on total post-1986 earnings and profits (E&P) that have previously been deferred from U.S. income taxes. We recorded a provisional charge for our deemed repatriation tax of $165. We expect to utilize our existing foreign tax credit carryforwards to settle the estimated deemed repatriation tax. We have not yet completed our calculation of the total post-1986 foreign E&P for our foreign subsidiaries. Further, the deemed repatriation tax is based in part on the amount of those earnings held in cash and other specified assets. This amount may change when we fully develop and finalize the calculations of post-1986 foreign E&P previously deferred from U.S. income taxes and the amounts held in cash or other specified assets. In addition, clarifications in the law and further legislative guidance that may be issued could impact this calculation. Our estimated charge for the Tax Act also included a provisional charge of approximately $100 for other tax liabilities and adjustments resulting from our provisional estimate of the actual and anticipated distributions of our net accumulated foreign E&P. As a consequence of the Tax Act, we now provisionally no longer consider our foreign earnings indefinitely reinvested. This estimate is subject to refinement based on a final determination of the amount of our foreign earnings as well as the jurisdictions that will subject these earnings to tax.

Deferred tax assets and liabilities: We remeasured certain deferred tax assets and liabilities based on the new statutory income tax rate of 25%, inclusive of estimated state taxes. We recorded a provisional amount related to the remeasurement of our deferred tax balance of $135. However, we are still analyzing certain aspects of the Tax Act, evaluating the state tax implications, refining our calculations and assessing our position on various available elections, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts.

In summary, our estimated provisional charge incorporates assumptions made based on our current interpretation of the Tax Act as well as currently available information and may change, possibly materially, as we complete our analysis and receive additional clarification and implementation guidance. Changes in interpretations and assumptions, as well as actions we may take as a result of the Tax Act may also impact this estimated charge. In addition, certain tax positions will likely get finalized when we file our 2017 U.S. tax return, which will enable us to conclude whether any further adjustments are required to our net deferred tax balances in the U.S. as well as to the liability associated with the deemed repatriation tax. Any adjustments to these provisional amounts will be reported as a component of Income tax expense in the reporting period in which any such adjustments are determined. Further, the Company is in the process of analyzing the effects of new taxes due on certain foreign income, such as GILTI (global intangible low-taxed income), BEAT (base-erosion anti-abuse tax), FDII (foreign-derived intangible income) and limitations on interest expense deductions (if certain conditions apply) that are effective starting in 2018, and other provisions of the Tax Legislation. The Company has elected to account for GILTI as period costs if and when incurred pursuant to the exposure draft issued by the FASB in January 2018.

Deferred Income Taxes

As of December 31, 2016, we did not provide any deferred taxes on undistributed earnings of our foreign subsidiaries and other foreign investments carried at equity since such undistributed earnings were determined to be indefinitely reinvested and we did not have any plans to initiate an action that would precipitate a deferred tax impact. During the fourth quarter of 2017, we changed our intent with regard to the net accumulated earnings and profits of our foreign subsidiaries and other foreign investments carried at equity. The change was prompted by the Tax Act enacted in December 2017 as discussed above. In connection with this change, we provided an estimate for the transition tax on the deemed repatriated foreign earnings as well as an estimate for state and foreign taxes on future distributions of net accumulated foreign earnings and profits.

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



	December 31,
	2017			2016
Deferred Tax Assets
Research and development	$	143		$	289
Post-retirement medical benefits	183			276
Net operating losses	432			407
Operating reserves, accruals and deferrals	128			190
Tax credit carryforwards	646			751
Deferred and share-based compensation	43			76
Pension	308			660
Depreciation	106			8
Other	62			73
Subtotal	2,051			2,730
Valuation allowance	(435		)	(416		)
Total	$	1,616		$	2,314

Deferred Tax Liabilities
Unearned income and installment sales	$	344		$	633
Intangibles and goodwill	134			200
Unremitted earnings of foreign subsidiaries	140			9
Other	14			39
Total	$	632		$	881

Total Deferred Taxes, Net	$	984		$	1,433

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, 2017 and 2016 was an increase of $19 and $33, 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, 2017, we had tax credit carryforwards of $646 available to offset future income taxes, of which $23 are available to carryforward indefinitely while the remaining $623 will expire 2018 through 2038 if not utilized. We also had net operating loss carryforwards for income tax purposes of $0.8 billion that will expire 2018 through 2038, if not utilized, and $1.8 billion available to offset future taxable income indefinitely.

Contingencies and Litigation

12 Months Ended

Dec. 31, 2017

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, 2017, 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, 2017, the total amounts related to the unreserved portion of the tax and labor contingencies, inclusive of related interest, amounted to approximately $600 with the decrease from the December 31, 2016 balance of $750, primarily related to closed cases partially offset by interest. With respect to the unreserved balance of $600, 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, 2017 we had $72 of escrow cash deposits for matters we are disputing and additional letters of credit and surety bonds of $147 and $98, respectively, which include associated indexation. There were no liens on Brazilian assets as of December 31, 2017. 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

Transactions to Combine Xerox and Fuji Xerox: In February 2018, five complaints, including four purported class actions, were filed by Xerox shareholders in the Supreme Court of the State of New York, County of New York in connection with the proposed transactions to combine Xerox and Fuji Xerox. All of the complaints name as defendants Xerox, its directors, and FUJIFILM Holdings Corporation (“Fujifilm”). The complaint in one of the actions also names as a defendant Ursula M. Burns, the former Chief Executive Officer of Xerox. The plaintiffs allege, among other things, that Xerox’s directors breached their fiduciary duties in negotiating, approving, and purportedly making false and misleading disclosures about the proposed transactions, and that Xerox and/or Fujifilm aided and abetted those breaches. The complaint in one of the actions further alleges that all defendants engaged in common law fraud by purportedly failing to disclose information about the joint venture agreements between Xerox and Fujifilm. The lawsuits seek injunctive relief preventing the proposed transactions, and/or additional disclosures by Xerox’s directors, various directions to Xerox’s directors, unspecified damages from Xerox’s directors, costs and attorneys’ fees, as well as other relief. Xerox believes the lawsuits are meritless and will vigorously defend them. At this time, however, it is premature to make any conclusion regarding the probability of incurring material losses in these litigations. 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, including an inability to close the proposed transactions.

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. In August 2017, the State of Texas filed a Second Amended Petition, which makes substantially similar allegations and seeks similar remedies as the original lawsuit. On October 23, 2017, Xerox Corporation filed a Motion for Summary Judgment seeking judgment in Xerox's favor on all claims against it. 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, Robert K. Zapfel, David H. Bywater and Mary Scanlon: 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 alleged 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 sought, 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. On February 28, 2017, the Court issued an opinion and order appointing the Arkansas Public Employees Retirement System ("APERS") as lead plaintiff. On May 1, 2017, APERS filed an amended complaint, alleging substantially similar claims and seeking substantially similar relief, but adding David Bywater and Mary Scanlon as defendants. On June 30, 2017, defendants moved to dismiss the amended complaint, and the motion was fully briefed on October 13, 2017. Xerox 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, 2017 were $15, $15 and $22, respectively. Total product warranty liabilities as of December 31, 2017 and 2016 were $7 and $8, respectively.

Other Contingencies

We have issued or provided approximately $370 of guarantees as of December 31, 2017 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, 2017
Equity [Abstract]
Preferred Stock	Preferred Stock Series B Convertible Perpetual Preferred Stock We have issued 180,000 shares of Series B Convertible Perpetual Preferred Stock, that have an aggregate liquidation value of $180 and a carrying value of $214. The Series B Convertible Preferred Stock pays quarterly cash dividends at a rate of 8% per year ($14 per year). Each share of Preferred Stock is convertible at any time, at the option of the holder, into 37.4532 shares of common stock for a total of 6,742 thousand shares (reflecting an initial conversion price of approximately $26.70 per share of common stock), subject to customary anti-dilution adjustments. If the closing price of our common stock exceeds $39.00 or 146.1% of the initial conversion price of $26.70 per share of common stock for 20 out of 30 consecutive trading days, we have the right to cause any or all of the Series B Convertible Perpetual Preferred Stock to be converted into shares of common stock at the then applicable conversion rate. The 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. Common stock share prices and amounts noted above related to the conversion of the Series B Convertible Perpetual Preferred Stock have all been adjusted to reflect the one-for-four reverse stock split previously disclosed in Note 1 - Basis of Presentation and Summary of Significant Accounting Policies.

Shareholders' Equity

12 Months Ended

Dec. 31, 2017

Stockholders' Equity Note [Abstract]

Shareholders' Equity

Shareholders’ Equity

As previously disclosed in Note 1 - Basis of Presentation and Summary of Significant Accounting Policies, a one-for-four reverse stock split became effective on June 14, 2017 for all authorized, issued and outstanding shares of Xerox common stock. Accordingly, all share and per share amounts have been adjusted to reflect this reverse stock split for all prior periods presented.

Preferred Stock

As of December 31, 2017, we had one class of preferred stock outstanding. See Note 20 - 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 437.5 million authorized shares of common stock, $1.00 par value per share. At December 31, 2017, 24 million shares were reserved for issuance under our incentive compensation plans, 12 million shares were reserved for debt to equity exchanges and approximately 7 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 shareholders' 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, 2017. No shares were repurchased during 2017 or 2016 (shares in thousands):



Authorized share repurchase programs	$	8,000
Share repurchase cost	$	7,755
Share repurchase fees	$	12
Number of shares repurchased	173,807

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, 2017.

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, 2014	281,089	1,903
Stock based compensation plans, net	2,823	—
Acquisition of Treasury stock	—	28,800
Cancellation of Treasury stock	(30,703)	(30,703)
Balance at December 31, 2015	253,209	—
Stock based compensation plans, net	385	—
Balance at December 31, 2016	253,594	—
Stock based compensation plans, net	1,019	—
Balance at December 31, 2017	254,613	—

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, 2017 and 2016, 16 million and 10 million shares, respectively, were available for grant of awards.

Stock-based compensation expense was as follows:



	Year Ended December 31,
	2017		2016		2015
Stock-based compensation expense, pre-tax	$	52	$	50	$	27
Income tax benefit recognized in earnings	20		19		10

Restricted Stock Units: Compensation expense is based upon the grant date market price and 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 all plan participants have the potential to earn additional shares of common stock up to a maximum overachievement of 100% of the original grant.

In 2017, the maximum overachievement that could be earned was changed to 100% (from 25%) for all participants to align their maximum overachievement with that of the officers and selected executives. Previously that level was only available to officers and certain senior executives. All PSs entitle the holder to one share of common stock, payable after a three-year service period and attainment of the stated goals.

Because of the difficulty in setting three-year performance goals that would appropriately take into account the Separation, PSs granted in 2015 and 2016 vested contingent upon achieving two-year and one-year performance goals, respectively.

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.

Note: Management’s estimate of the number of shares expected to vest at the time of grant reflects an estimate for forfeitures based on our historical forfeiture rate to date. Should actual forfeitures differ from management’s estimate, the activity will be reflected in a subsequent period.

Summary of Stock-based Compensation Activity



	2017				2016				2015
(shares in thousands)	Shares		Weighted Average Grant Date Fair Value		Shares⁽¹⁾		Weighted Average Grant Date Fair Value⁽¹⁾⁽²⁾		Shares⁽¹⁾		Weighted Average Grant Date Fair Value⁽¹⁾⁽²⁾
Restricted Stock Units
Outstanding at January 1	1,807		$	30.10	598		$	44.20	3,049		$	38.00
Granted	1,436		31.39		1,793		38.28		200		44.32
Vested	(117	)	36.99		(79	)	38.48		(2,548	)	31.44
Cancelled	(270	)	29.03		(137	)	40.48		(103	)	37.08
Separation of Conduent	—		—		(786	)	40.28		—		—
Shares granted in equity conversion	—		—		418		30.10		—		—
Outstanding at December 31	2,856		30.65		1,807		30.10		598		44.20

Performance Shares
Outstanding at January 1	5,054		$	33.98	5,802		$	46.68	5,180		$	45.44
Granted	1,349		32.80		1,320		37.40		2,368		42.72
Vested	(1,413	)	37.44		(8	)	45.32		(817	)	31.60
Cancelled	(1,873	)	34.59		(1,234	)	47.36		(929	)	42.96
Separation of Conduent	—		—		(1,974	)	44.36		—		—
Shares granted in equity conversion	—		—		1,148		33.98		—		—
Outstanding at December 31	3,117		31.54		5,054		33.98		5,802		46.68

Stock Options
Outstanding at January 1	—		$	—	780		$	27.48	1,529		$	28.00
Canceled/expired	—		—		(98	)	27.96		(101	)	29.72
Exercised	—		—		(306	)	28.12		(648	)	28.36
Separation of Conduent	—		—		(376	)	26.80		—		—
Outstanding at December 31	—		—		—		—		780		27.48
Exercisable at December 31	—		—		—		—		780		27.48

____________


(1)	Share activity and weighted average grant date fair values include immaterial rounding due to our one-for-four reverse stock split.


(2)	Exercise price for stock options.

The total unrecognized compensation cost related to non-vested stock-based awards at December 31, 2017 was as follows:

The aggregate intrinsic value of outstanding RSU and PS awards was as follows:



Awards	December 31, 2017
Restricted Stock Units	$	83
Performance Shares	91

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



	December 31, 2017						December 31, 2016						December 31, 2015
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	$	3	$	—	$	1	$	109	$	—	$	33
Performance Shares	40		—		12		—		—		—		35		—		12
Stock Options	—		—		—		3		9		1		14		19		5

Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2017

Other Comprehensive Income [Abstract]

Other Comprehensive Income (Loss)

The historical statements of Comprehensive Income (Loss) and Shareholders' Equity have not been revised to reflect the effect of the Separation and instead reflect the Separation as a final adjustment to the balances at December 31, 2016. Refer to Note 5 - Divestitures for additional information regarding the Separation. Other Comprehensive Income (Loss) is comprised of the following:



	Year Ended December 31,
	2017						2016						2015
	Pre-tax			Net of Tax			Pre-tax			Net of Tax			Pre-tax			Net of Tax
Translation Adjustments Gains (Losses)	$	484		$	483		$	(345	)	$	(347	)	$	(651	)	$	(651	)
Unrealized (Losses) Gains:
Changes in fair value of cash flow hedges (losses) gains	(28		)	(23		)	18			14			13			12
Changes in cash flow hedges reclassed to earnings⁽¹⁾	35			25			(40		)	(28		)	28			13
Other losses	(1		)	(1		)	(1		)	(1		)	(3		)	(2		)
Net Unrealized Gains (Losses)	6			1			(23		)	(15		)	38			23

Defined Benefit Plans Gains (Losses)
Net actuarial/prior service gains (losses)	52			64			(118		)	(87		)	(73		)	(86		)
Prior service amortization/curtailment⁽²⁾	(10		)	(7		)	(10		)	(6		)	(38		)	(23		)
Actuarial loss amortization/settlement⁽²⁾	236			158			160			109			186			126
Fuji Xerox changes in defined benefit plans, net⁽³⁾	29			29			(93		)	(93		)	21			21
Other (losses) gains⁽⁴⁾	(138		)	(138		)	202			203			116			115
Changes in Defined Benefit Plans Gains	169			106			141			126			212			153

Other Comprehensive Income (Loss)	659			590			(227		)	(236		)	(401		)	(475		)
Less: Other comprehensive income (loss) attributable to noncontrolling interests	1			1			(3		)	(3		)	(1		)	(1		)
Other Comprehensive Income (Loss) Attributable to Xerox	$	658		$	589		$	(224	)	$	(233	)	$	(400	)	$	(474	)

_____________


(1)	Reclassified to Cost of sales - refer to Note 15 - Financial Instruments for additional information regarding our cash flow hedges.


(2)	Reclassified to Total Net Periodic Benefit Cost - refer to Note 17 - 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 5 - Divestitures for additional information regarding the Separation. AOCL is comprised of the following:



	December 31,
	2017			2016			2015
Cumulative translation adjustments	$	(1,781	)	$	(2,263	)	$	(2,390	)
Other unrealized (losses) gains, net	(12		)	(13		)	1
Benefit plans net actuarial losses and prior service credits⁽¹⁾	(1,955		)	(2,061		)	(2,241		)
Total Accumulated Other Comprehensive Loss Attributable to Xerox	$	(3,748	)	$	(4,337	)	$	(4,630	)

_____________


(1)	Includes our share of Fuji Xerox.

Earnings (Loss) per Share

12 Months Ended

Dec. 31, 2017

Earnings Per Share [Abstract]

Earnings (Loss) per Share

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



	Year Ended December 31,
	2017			2016			2015
Basic Earnings (Loss) per Share:
Net income from continuing operations attributable to Xerox	$	192		$	622		$	822
Accrued dividends on preferred stock	(14		)	(24		)	(24		)
Adjusted Net income from continuing operations available to common shareholders	$	178		$	598		$	798
Net income (loss) from discontinued operations attributable to Xerox	3			(1,093		)	(374		)
Adjusted Net income (loss) available to common shareholders	$	181		$	(495	)	$	424
Weighted-average common shares outstanding	254,341			253,391			266,131
Basic Earnings (Loss) per Share:
Continuing operations	$	0.70		$	2.36		$	3.00
Discontinued operations	0.01			(4.31		)	(1.41		)
Basic Earnings (Loss) per Share	$	0.71		$	(1.95	)	$	1.59

Diluted Earnings (Loss) per Share:
Net income from continuing operations attributable to Xerox	$	192		$	622		$	822
Accrued dividends on preferred stock	(14		)	(24		)	(24		)
Adjusted net income from continuing operations available to common shareholders	$	178		$	598		$	798
Net income (loss) from discontinued operations attributable to Xerox	3			(1,093		)	(374		)
Adjusted Net income (loss) available to common shareholders	$	181		$	(495	)	$	424
Weighted-average common shares outstanding	254,341			253,391			266,131
Common shares issuable with respect to:
Stock options	—			174			324
Restricted stock and performance shares	2,229			2,430			2,601
Adjusted Weighted average common shares outstanding	256,570			255,995			269,056

Diluted Earnings (Loss) per Share:
Continuing operations	$	0.70		$	2.33		$	2.97
Discontinued operations	0.01			(4.26		)	(1.39		)
Diluted Earnings (Loss) per Share	$	0.71		$	(1.93	)	$	1.58

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	—			202			456
Restricted stock and performance shares	3,706			5,430			4,402
Convertible preferred stock	6,742			6,742			6,742
Total Anti-Dilutive Securities	10,448			12,374			11,600

Dividends per Common Share	$	1.00		$	1.24		$	1.12

Subsequent Event Subsequent Event	12 Months Ended
Subsequent Event Subsequent Event	Dec. 31, 2017
Subsequent Event [Abstract]
Subsequent Events [Text Block]	Subsequent Event Transaction to Combine Xerox and Fuji Xerox On January 31, 2018, Xerox entered into a Redemption Agreement with FUJIFILM Holdings Corporation, a Japanese company (“Fujifilm”), and Fuji Xerox Co., Ltd, a Japanese company in which Xerox indirectly holds a 25 percent equity interest and Fujifilm holds the remaining 75 percent equity interest (“Fuji Xerox”) (the “Redemption Agreement”), pursuant to which, among other things, (i) Fuji Xerox shall redeem for cash most or all of Fujifilm’s 75 percent equity interest in Fuji Xerox and (ii) Fuji Xerox shall become an indirect majority or wholly owned subsidiary of Xerox (the “Redemption”). The combined company resulting from the Fujifilm Transactions (as defined below) shall hereinafter be referred to as “New Fuji Xerox”. Concurrently with the execution and delivery of the Redemption Agreement, Xerox entered into a Share Subscription Agreement with Fujifilm (the “Subscription Agreement” and together with the Redemption Agreement, the “Fujifilm Transaction Agreements”), pursuant to which, among other things, (i) Fujifilm shall subscribe for and purchase from Xerox, and Xerox shall issue to Fujifilm, a number of shares of common capital stock of Xerox (and after Closing, of New Fuji Xerox, “Common Stock”) representing 50.1 percent of (i) the aggregate number of issued and outstanding shares of Common Stock (excluding any performance shares issued under the Company’s existing employee incentive plans) plus (ii) such additional shares of Common Stock that would be issued and outstanding assuming the exercise of in-the-money options as of 5:00 p.m. New York time two business days prior to closing of the Fujifilm Transactions (as defined below) (the “Closing”) plus (iii) any shares of Common Stock reserved for issue relating to restricted stock units outstanding as of the Closing that are fully vested as of 5:00 p.m. New York time two business days prior to the Closing (collectively, the “Fully Diluted Capital Stock”) of Xerox in exchange for (A) cash and (B) all of the issued and outstanding equity interests of Fuji Xerox not held by Xerox or its wholly owned subsidiaries and (ii) Xerox shall become a direct, majority owned subsidiary of Fujifilm (the “Issuance” and together with the Redemption, the “Fujifilm Transactions”). In addition, pursuant to the terms of the Subscription Agreement, at Closing, an aggregate number of shares equal to the “True-Up Shares” (as defined in the Subscription Agreement) shall be held in escrow and released to Fujifilm as and if necessary for Fujifilm to maintain its ownership percentage. In connection with the Fujifilm Transactions, Xerox expects to pay a special pro rata cash dividend to its shareholders in an amount equal to $2.5 billion in the aggregate (the “Special Dividend”), which is expected to be financed through the issuance of debt that will be incurred by New Fuji Xerox. Fujifilm will not be a shareholder of Xerox as of the record date for the Special Dividend and therefore will not receive any payment in respect thereof. As noted above, immediately following the Closing, Fujifilm is expected to own approximately 50.1 percent of the Fully Diluted Capital Stock of New Fuji Xerox and Xerox shareholders are expected to own approximately 49.9 percent. Further, pursuant to that certain Shareholders Agreement, to be entered into by Xerox and Fujifilm at Closing (the “Shareholders Agreement”), the Board of Directors of New Fuji Xerox will have twelve directors, which will initially be composed of seven individuals designated by Fujifilm and five individuals from among the members of the Board of Directors of the Company immediately prior to Closing designated by Xerox in consultation with and subject to reasonable approved by Fujifilm. Accordingly, the Fujifilm Transactions are expected to be accounted for as a reverse acquisition. Xerox must pay to Fujifilm a $183 termination fee (the “Termination Fee”) in the event that the Subscription Agreement is terminated (i) by either party because the applicable shareholder approvals are not obtained if an alternative acquisition proposal is publicly announced prior to the Xerox shareholder meeting duly called for the purpose of obtaining the applicable shareholder approvals and Xerox enters into a definitive agreement with respect to, or otherwise consummates, an alternative acquisition proposal within 12 months after the termination of the Subscription Agreement; (ii) by Fujifilm (A) in connection with a material and intentional breach by Xerox of its non-solicitation obligations resulting in a third party making an alternate acquisition proposal that is reasonably likely to materially interfere with the Fujifilm Transactions or (B) following a change in the recommendation by the Board of Directors of Xerox; or (iii) by Xerox in order to enter into a definitive agreement with a third party with respect to a superior proposal, in each case as set forth in, and subject to the conditions of, the Fujifilm Transaction Agreements. We expect the Fujifilm Transactions, which require Xerox shareholder approval, to close in the second half of 2018 subject to customary regulatory approvals, filings with the U.S. Securities and Exchange Commission, tax considerations, and securing any necessary financing. Until the combination is complete, each of Xerox, Fuji Xerox and Fujifilm will continue to be separate, independent organizations and will operate as usual.

Schedule II Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2017

Valuation and Qualifying Accounts [Abstract]

Schedule II Valuation and Qualifying Accounts

Schedule II

Valuation and Qualifying Accounts

For the three years ended December 31, 2017



(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
2017 Allowance for Losses:
Accounts Receivable	$	64	$	16	$	(2	)	$	(19	)	$	59
Finance Receivables	110		17		15			(34		)	108
	$	174	$	33	$	13		$	(53	)	$	167

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

_____________


(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, 2017

Basis of Consolidation

Use of Estimates

The following table summarizes certain recurring-type costs and expenses that require management estimates for the three years ended December 31, 2017:



	Year Ended December 31,
Expense/(Income)	2017		2016		2015
Provisions for restructuring and related costs	$	220	$	264	$	27
Provision for receivables	46		43		54
Provisions for obsolete and excess inventory	27		28		30
Provision for product warranty liability	15		15		22
Depreciation and obsolescence of equipment on operating leases	265		276		286
Depreciation of buildings and equipment	136		148		151
Amortization of internal use software	65		73		83
Amortization of product software	4		4		4
Amortization of acquired intangible assets	53		58		60
Amortization of customer contract costs	4		4		6
Defined pension benefits - net periodic benefit cost	194		127		141
Retiree health benefits - net periodic benefit cost	30		35		2
Income tax expense	481		62		193

Changes in Estimates - Methodology

Changes in Estimates

New Accounting Pronouncements, Policy

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

Leases

Cash Flows

Derivatives

Retirement Benefits

Intangibles - Goodwill and Other

Business Combinations

Income Taxes

Stock Compensation

Financial Instruments - Credit Losses

Other Updates


•	Service Concession Arrangements: ASU 2017-10, (Topic 853) Determining the Customer of the Operation Services (a consensus of the FASB Emerging Issues Task Force). This update is effective for our fiscal year beginning January 1, 2018.


•	Compensation - Stock Compensation: ASU 2017-09, (Topic 718) Scope of Modification Accounting. This update is effective for our fiscal year beginning January 1, 2018.


•	Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets: ASU 2017-05, (Subtopic 610-20) Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. This update is effective for our fiscal year beginning January 1, 2018.


•	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.


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

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.

Income Tax, Policy

Shipping and Handling

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

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 on Operating Leases

Software - Internal Use and Product

Refer to Note 9 - Land, Buildings, Equipment and Software, Net for further information.

Capitalization of Internal Costs

Software - Internal Use and Product

Refer to Note 9 - Land, Buildings, Equipment and Software, Net for further information.

Goodwill and Other Intangible Assets

Refer to Note 11 - Goodwill and Intangible Assets, Net for further information.

Impairment of Long-Lived Assets

Pension and Post-Retirement Benefit Obligations

Refer to Note 17 - Employee Benefit Plans for further information regarding our Pension and Post-Retirement Benefit Obligations.

Foreign Currency Transactions and Re-measurement

Foreign Currency Translation and Re-measurement

Interest Expense, Policy [Policy Text Block]

Fair Value of Financial Instruments, Policy

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

12 Months Ended

Dec. 31, 2017

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, 2017:



	Year Ended December 31,
Expense/(Income)	2017		2016		2015
Provisions for restructuring and related costs	$	220	$	264	$	27
Provision for receivables	46		43		54
Provisions for obsolete and excess inventory	27		28		30
Provision for product warranty liability	15		15		22
Depreciation and obsolescence of equipment on operating leases	265		276		286
Depreciation of buildings and equipment	136		148		151
Amortization of internal use software	65		73		83
Amortization of product software	4		4		4
Amortization of acquired intangible assets	53		58		60
Amortization of customer contract costs	4		4		6
Defined pension benefits - net periodic benefit cost	194		127		141
Retiree health benefits - net periodic benefit cost	30		35		2
Income tax expense	481		62		193

Correction of Fuji Xerox Misstatement in Prior Period Financial Statements (Tables)

12 Months Ended

Dec. 31, 2017

Impact of Revisions [Table Text Block]

Revised Annual Consolidated Statements of Income

The following tables reconcile selected lines from the company’s fiscal years of 2016 and 2015 Consolidated Statements of (Loss) Income from the previously reported amounts to the revised amounts:



	Year Ended December 31, 2016								Year Ended December 31, 2015
	As Reported			Adjustment		As Revised			As Reported		Adjustment			As Revised
Equity in net income of unconsolidated affiliates	$	121		$	6	$	127		$	135	$	(26	)	$	109
Income from Continuing Operations	627			6		633			866		(26		)	840
Net (Loss) Income	(466		)	6		(460		)	492		(26		)	466
Net (Loss) Income Attributable to Xerox	(477		)	6		(471		)	474		(26		)	448

Net income from continuing operations attributable to Xerox	$	616		$	6	$	622		$	848	$	(26	)	$	822

Basic Earnings (Loss) per Share:
Continuing operations	$	2.33		$	0.03	$	2.36		$	3.10	$	(0.10	)	$	3.00
Total	$	(1.98	)	$	0.03	$	(1.95	)	$	1.69	$	(0.10	)	$	1.59

Diluted Earnings (Loss) per Share:
Continuing operations	$	2.31		$	0.02	$	2.33		$	3.06	$	(0.09	)	$	2.97
Total	$	(1.96	)	$	0.03	$	(1.93	)	$	1.67	$	(0.09	)	$	1.58

_____________

Revised Consolidated Statements of Comprehensive (Loss) Income



	Year Ended December 31, 2016									Year Ended December 31, 2015
	As Reported			Adjustment			As Revised			As Reported			Adjustment			As Revised
Net (Loss) Income	$	(466	)	$	6		$	(460	)	$	492		$	(26	)	$	466
Net (Loss) Income Attributable to Xerox	(477		)	6			(471		)	474			(26		)	448

Translation adjustments, net	$	(346	)	$	(1	)	$	(347	)	$	(660	)	$	9		$	(651	)
Other Comprehensive Loss, Net	(235		)	(1		)	(236		)	(484		)	9			(475		)
Other Comprehensive Loss, Net Attributable to Xerox	(232		)	(1		)	(233		)	(483		)	9			(474		)

Comprehensive (Loss) Income, Net	$	(701	)	$	5		$	(696	)	$	8		$	(17	)	$	(9	)
Comprehensive Loss, Net Attributable to Xerox	(709		)	5			(704		)	(9		)	(17		)	(26		)

Revised Consolidated Balance Sheets

The following table reconciles selected lines from the company’s Consolidated Balance Sheets at December 31, 2016 and 2015 from the previously reported amounts to the revised amounts:



	As of December 31, 2016									As of December 31, 2015
	As Reported			Adjustment			As Revised			As Reported			Adjustment			As Revised
Investments in affiliates, at equity	$	1,388		$	(94	)	$	1,294		$	1,382		$	(99	)	$	1,283
Total Assets	18,145			(94		)	18,051			25,541			(99		)	25,442

Retained earnings	$	5,039		$	(105	)	$	4,934		$	9,686		$	(111	)	$	9,575
Accumulated other comprehensive loss	(4,348		)	11			(4,337		)	(4,642		)	12			(4,630		)
Xerox shareholders' equity	4,803			(94		)	4,709			9,074			(99		)	8,975
Total Equity	4,841			(94		)	4,747			9,117			(99		)	9,018
Total Liabilities and Equity	18,145			(94		)	18,051			25,541			(99		)	25,442

Revised Consolidated Statements of Cash Flows from Operations



	Year Ended December 31, 2016									Year Ended December 31, 2015
	As Reported			Adjustment			As Revised			As Reported			Adjustment			As Revised
Cash Flows from Operating Activities:
Net (Loss) Income	$	(466	)	$	6		$	(460	)	$	492		$	(26	)	$	466
Income from Continuing Operations	627			6			633			866			(26		)	840

Undistributed equity in net income of unconsolidated affiliates	$	(69	)	$	(6	)	$	(75	)	$	(79	)	$	26		$	(53	)

Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Revenue and long-lived assets by geography

Geographic Area Data

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⁾
	2017		2016		2015		2017		2016
United States	$	6,064	$	6,403	$	6,734	$	770	$	824
Europe	2,697		2,861		3,155		355		359
Other areas	1,504		1,507		1,576		167		178
Total Revenues and Long-Lived Assets	$	10,265	$	10,771	$	11,465	$	1,292	$	1,361

_____________


(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.

Acquisitions (Tables)

12 Months Ended

Dec. 31, 2017

Business Combinations [Abstract]

Schedule of Business Acquisitions, by Acquisition

The following table summarizes the purchase price allocations for our 2017 acquisitions as of the acquisition dates:



	Weighted-Average Life (Years)	Total 2017 Acquisitions
Accounts/finance receivables		$	8
Intangible assets:
Customer relationships	10	17
Trademarks	20	10
Non-compete agreements	3	1
Goodwill		44
Other assets		18
Total Assets Acquired		98
Liabilities assumed		(11		)
Total Purchase Price		$	87

Divestitures (Tables)

12 Months Ended

Dec. 31, 2017

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, 2017
	Conduent			ITO		Total
Revenue	$	—		$	—	$	—

Loss from operations⁽¹⁾	$	(9	)	$	—	$	(9	)
Loss on disposal	—			—		—
Net loss before income taxes	(9		)	—		(9		)
Income tax benefit⁽²⁾	12			—		12
Income from discontinued operations, net of tax	$	3		$	—	$	3

_____________


(1)	2017 includes $9 of Separation related costs.


(2)	Primarily reflects changes in estimates.



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

Loss from operations⁽¹⁾	$	(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	)

_____________


(1)	2016 includes $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.



	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	)

The balance Due from Conduent at December 31, 2016 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, Conduent, costs and expenses

The following is a summary of selected financial information of Conduent for the years ended December 31, 2016 and 2015:



	Year Ended December 31,
	2016		2015
Cost and Expenses:
Cost of services	$	5,456	$	5,923
Other Expenses	2,065		1,192
Total Costs and Expenses	$	7,521	$	7,115

Selected amounts included in Costs and Expenses:
Depreciation of buildings and equipment	$	130	$	126
Amortization of internal use software	49		51
Amortization of product software	61		65
Amortization of acquired intangible assets	280		250
Amortization of customer contract costs	93		108
Operating lease rent expense	378		389
Defined contribution plans	35		34
Interest expense ⁽¹⁾	13		8
Goodwill impairment charge ⁽²⁾	935		—

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

_____________


(1)	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 year ended December 31, 2016 and 2015.


(2)	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.

Discontinued Operations - Conduent Balance Sheet

The following is a summary of the major categories of assets and liabilities that were transferred to Conduent as of December 31, 2016:



	December 31, 2016
Cash and cash equivalents	$	390
Accounts receivable, net	1,287
Other current assets	239
Total current assets of discontinued operations	1,916
Land, buildings and equipment, net	283
Intangible assets, net	1,144
Goodwill	3,889
Other long-term assets	477
Total long-term assets of discontinued operations	5,793
Total Assets of Discontinued Operations	$	7,709

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

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=65878427&loc=SL51721533-107759

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721665-107760

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=64827811&loc=d3e1474-107760

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=64827811&loc=d3e1361-107760

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721683-107760

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=84176398&loc=SL51724579-110230

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5C
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721675-107760

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721663-107760

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84176398&loc=d3e2941-110230

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-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

+ Details

Accounts Receivables, Net (Tables)

12 Months Ended

Dec. 31, 2017

Accounts receivable sales activity

Accounts receivable, net

Accounts receivable, net were as follows:



	December 31,
	2017			2016
Invoiced	$	1,048		$	651
Accrued	368			374
Allowance for doubtful accounts	(59		)	(64		)
Accounts Receivable, Net	$	1,357		$	961

Accounts receivable sales activity was as follows:



	Year Ended December 31,
	2017		2016		2015
Accounts receivable sales	$	1,733	$	2,267	$	2,142
Deferred proceeds	164		233		247
Loss on sale of accounts receivable	10		16		13

Finance Receivables, Net (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Financing Receivables, Minimum Payments

Finance Receivables

Finance receivables, net were as follows:



	December 31,
	2017			2016
Gross receivables	$	4,354		$	4,380
Unearned income	(494		)	(526		)
Subtotal	3,860			3,854
Residual values	—			—
Allowance for doubtful accounts	(108		)	(110		)
Finance Receivables, Net	3,752			3,744
Less: Billed portion of finance receivables, net	112			90
Less: Current portion of finance receivables not billed, net	1,317			1,256
Finance Receivables Due After One Year, Net	$	2,323		$	2,398

Contractual maturities of our gross finance receivables as of December 31, 2017 were as follows (including those already billed of $112):



2018		2019		2020		2021		2022		Thereafter		Total
$	1,686	$	1,211	$	827	$	454	$	163	$	13	$	4,354

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, 2015⁽¹⁾	$	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
Provision	11			2			4			—		17
Charge-offs	(12		)	(5		)	(11		)	—		(28		)
Recoveries and other⁽³⁾	2			2			5			—		9
Balance at December 31, 2017	$	56		$	15		$	35		$	2	$	108
Finance Receivables Collectively Evaluated for Impairment:
December 31, 2016⁽⁴⁾	$	2,138		$	378		$	1,286		$	52	$	3,854
December 31, 2017⁽⁴⁾	$	2,029		$	397		$	1,362		$	72	$	3,860

_____________


(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 $108 and $110 at December 31, 2017 and 2016, 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, 2017								December 31, 2016⁽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	$	199	$	345	$	75	$	619	$	215	$	343	$	60	$	618
Government and education	490		61		6		557		535		56		17		608
Graphic arts	84		97		141		322		135		106		106		347
Industrial	82		84		14		180		88		82		14		184
Healthcare	88		48		9		145		92		39		12		143
Other	68		98		40		206		90		106		42		238
Total United States	1,011		733		285		2,029		1,155		732		251		2,138
Finance and other services	54		42		27		123		54		43		15		112
Government and education	48		5		5		58		52		6		2		60
Graphic arts	34		35		27		96		39		37		24		100
Industrial	20		12		11		43		21		13		6		40
Other	36		25		16		77		33		25		8		66
Total Canada	192		119		86		397		199		124		55		378
France	234		226		22		482		181		222		51		454
U.K/Ireland	106		150		10		266		95		148		10		253
Central⁽¹⁾	189		149		16		354		182		148		19		349
Southern⁽²⁾	52		144		13		209		36		131		14		181
Nordic⁽³⁾	29		21		1		51		26		22		1		49
Total Europe	610		690		62		1,362		520		671		95		1,286
Other	38		28		6		72		35		15		2		52
Total	$	1,851	$	1,570	$	439	$	3,860	$	1,909	$	1,542	$	403	$	3,854

_____________


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


(2)	Italy, Greece, Spain and Portugal.


(3)	Sweden, Norway, Denmark and Finland.


(4)	The December 31, 2016 amounts have been reclassified to conform to 2017 presentation.

Aging of Billed Finance Receivables

The aging of our billed finance receivables is as follows:



	December 31, 2017
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Finance and other services	$	18	$	3	$	1	$	22	$	597	$	619	$	12
Government and education	18		3		3		24		533		557		21
Graphic arts	12		1		—		13		309		322		6
Industrial	6		1		1		8		172		180		4
Healthcare	5		1		1		7		138		145		5
Other	7		1		1		9		197		206		3
Total United States	66		10		7		83		1,946		2,029		51
Canada	8		2		1		11		386		397		17
France	6		—		—		6		476		482		22
U.K./Ireland	3		—		—		3		263		266		—
Central⁽¹⁾	1		2		—		3		351		354		6
Southern⁽²⁾	4		1		1		6		203		209		6
Nordic⁽³⁾	—		—		—		—		51		51		—
Total Europe	14		3		1		18		1,344		1,362		34
Other	3		—		—		3		69		72		—
Total	$	91	$	15	$	9	$	115	$	3,745	$	3,860	$	102



	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

_____________


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


(2)	Italy, Greece, Spain and Portugal.


(3)	Sweden, Norway, Denmark and Finland.

Finance Receivables 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

Inventories and Equipment on Operating Leases, Net (Tables)

12 Months Ended

Dec. 31, 2017

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,
	2017		2016
Finished goods	$	777	$	713
Work-in-process	49		47
Raw materials	89		81
Total Inventories	$	915	$	841

Schedule of Property Subject to or Available for Operating Lease

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



	December 31,
	2017			2016
Equipment on operating leases	$	1,546		$	1,468
Accumulated depreciation	(1,092		)	(993		)
Equipment on Operating Leases, Net	$	454		$	475

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:



2018		2019		2020		2021		2022		Thereafter
$	313	$	208	$	131	$	66	$	24	$	2

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

12 Months Ended

Dec. 31, 2017

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)	2017			2016
Land		$	22		$	20
Building and building equipment	25 to 50	909			892
Leasehold improvements	Varies	192			238
Plant machinery	5 to 12	1,214			1,225
Office furniture and equipment	3 to 15	651			657
Other	4 to 20	54			70
Construction in progress		30			33
Subtotal		3,072			3,135
Accumulated depreciation		(2,443		)	(2,475		)
Land, Buildings and Equipment, Net		$	629		$	660

Land, Buildings and Equipment Depreciation Expense

Depreciation expense and operating lease rent expense were as follows:



	Year Ended December 31,
	2017		2016		2015
Depreciation expense	$	136	$	148	$	151
Operating lease expense	161		157		164

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, 2017 were as follows:



2018		2019		2020		2021		2022		Thereafter
$	127	$	100	$	77	$	55	$	42	$	48

Additions to Internal Use



	Year Ended December 31,
Additions to:	2017		2016		2015
Internal use software	$	36	$	45	$	64

Capitalized Costs, Internal Use [Table Text Block]



	December 31,
Capitalized costs, net:	2017		2016
Internal use software	$	209	$	218

Investment in Affiliates, at Equity (Tables)

12 Months Ended

Dec. 31, 2017

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,
	2017		2016
Fuji Xerox	$	1,366	$	1,219
Other	38		75
Investments in Affiliates, at Equity	$	1,404	$	1,294

Equity Net Income in Unconsolidated Affiliates

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



	Year Ended December 31,
	2017		2016		2015
Fuji Xerox	$	102	$	114	$	91
Other	13		13		18
Total Equity in Net Income of Unconsolidated Affiliates	$	115	$	127	$	109

Exchange rates for Equity Investments in Affiliates

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



Financial Statement	Exchange Basis	2017	2016	2015
Summary of Operations	Weighted average rate	112.14	108.76	120.97
Balance Sheet	Year-end rate	112.87	116.53	120.49

Other Transactions with Equity Affiliates

Transactions with Fuji Xerox were as follows:



	Year Ended December 31,
	2017		2016		2015
Dividends received from Fuji Xerox	$	46	$	47	$	51
Royalty revenue earned	103		110		105
Inventory purchases from Fuji Xerox	1,585		1,641		1,728
Inventory sales to Fuji Xerox	58		80		108
R&D payments received from Fuji Xerox	1		1		1
R&D payments paid to Fuji Xerox	14		13		7

Fuji Xerox [Member]

Schedule of Equity Method Investments [Line Items]

Equity Method Investments [Table Text Block]

Summarized financial information for Fuji Xerox is as follows:



	Year Ended December 31,
	2017		2016		2015
Summary of Operations
Revenues	$	9,638	$	10,149	$	9,832
Costs and expenses	9,072		9,460		9,225
Income before income taxes	566		689		607
Income tax expense	144		206		218
Net Income	422		483		389
Less: Net income - noncontrolling interests	5		8		7
Net Income - Fuji Xerox	$	417	$	475	$	382
Balance Sheet
Assets:
Current assets	$	4,315	$	4,313	$	4,350
Long-term assets	4,488		4,516		4,777
Total Assets	$	8,803	$	8,829	$	9,127
Liabilities and Equity:
Short-term debt	$	428	$	681	$	780
Other current liabilities	2,079		2,001		2,011
Long-term debt	76		283		584
Other long-term liabilities	369		587		521
Noncontrolling interests	33		31		31
Fuji Xerox shareholders' equity	5,818		5,246		5,200
Total Liabilities and Equity	$	8,803	$	8,829	$	9,127

Goodwill and Intangible Assets, Net (Tables)

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The following table presents the changes in the carrying amount of goodwill:



	Total
Balance at December 31, 2015	$	3,951
Foreign currency translation	(183		)
Acquisitions:
Imagetek	10
Other	9
Balance at December 31, 2016	$	3,787
Foreign currency translation	105
Acquisitions:
MT Business	33
Other	11
Divestiture⁽¹⁾	(6		)
Balance at December 31, 2017	$	3,930

_____________


(1)	Relates to the sale of Xerox Research Centre Europe in Grenoble, France to Naver. Refer to Note 5 - Divestitures for additional information regarding this divestiture.

Schedule of Finite-Lived Intangible Assets by Major Class

Intangible assets were comprised of the following:



		December 31, 2017						December 31, 2016
	Weighted Average Amortization	Gross Carrying Amount		Accumulated Amortization		Net Amount		Gross Carrying Amount		Accumulated Amortization		Net Amount
Customer relationships	10 years	$	319	$	236	$	83	$	508	$	410	$	98
Distribution network	25 years	123		89		34		123		84		39
Trademarks	20 years	261		120		141		250		107		143
Technology and non-compete	14 years	16		6		10		15		5		10
Total Intangible Assets		$	719	$	451	$	268	$	896	$	606	$	290

Restructuring and Asset Impairment Charges (Tables)

12 Months Ended

Dec. 31, 2017

Restructuring and Related Activities [Abstract]

Restructuring Program Activity

A summary of our restructuring program activity during the three years ended December 31, 2017 is as follows:



	Severance and Related Costs			Lease Cancellation and Other Costs			Asset Impairments⁽²⁾			Total
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
Restructuring provision	225			4			7			236
Reversals of prior accruals	(29		)	(6		)	—			(35		)
Net Current Period Charges⁽¹⁾	196			(2		)	7			201
Charges against reserve and currency	(192		)	(20		)	(7		)	(219		)
Balance at December 31, 2017	$	108		$	1		$	—		$	109

_____________


(1)	Represents net amount recognized within the Consolidated Statements of Income (Loss) 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,
	2017			2016			2015
Charges against reserve and currency	$	(219	)	$	(122	)	$	(92	)
Asset impairments	7			—			7
Effects of foreign currency and other non-cash items	(12		)	4			6
Restructuring Cash Payments	$	(224	)	$	(118	)	$	(79	)

Supplementary Financial Information (Tables)

12 Months Ended

Dec. 31, 2017

Supplemental Financial Information [Abstract]

Supplementary Financial Information

The components of Other assets and liabilities were as follows:



	December 31,
	2017		2016
Other Current Assets
Income taxes receivable	$	43	$	50
Royalties, license fees and software maintenance	18		21
Restricted cash	1		92
Prepaid expenses	43		45
Derivative instruments	2		88
Deferred purchase price from sales of accounts receivables	—		48
Beneficial interests - sales of finance receivables	—		8
Advances and deposits	27		15
Other	102		125
Due from Conduent	—		127
Total Other Current Assets	$	236	$	619
Other Current Liabilities
Income taxes payable	$	7	$	45
Other taxes payable	91		78
Interest payable	43		55
Restructuring reserves	106		121
Derivative instruments	25		39
Product warranties	6		7
Dividends payable	73		91
Distributor and reseller rebates/commissions	175		120
Servicer liabilities	—		62
Unearned income and other revenue deferrals	170		187
Other	211		290
Total Other Current Liabilities	$	907	$	1,095
Other Long-term Assets
Income taxes receivable	$	10	$	14
Prepaid pension costs	193		17
Derivative instruments	1		4
Net investment in TRG	—		126
Internal use software, net	209		218
Product software, net	—		8
Restricted cash	74		87
Debt issuance costs, net	5		3
Customer contract costs, net	10		7
Beneficial interest - sales of finance receivables	—		16
Deferred compensation plan investments	18		15
Other	162		168
Total Other Long-term Assets	$	682	$	683
Other Long-term Liabilities
Deferred taxes	$	42	$	42
Income taxes payable	21		16
Environmental reserves	9		9
Restructuring reserves	3		6
Other	131		120
Total Other Long-term Liabilities	$	206	$	193

Schedule of Restricted Cash

Restricted cash amounts were as follows:



	December 31,
	2017		2016
Tax and labor litigation deposits in Brazil	$	72	$	85
Escrow and cash collections related to receivable sales	—		62
Other restricted cash	3		32
Total Restricted Cash	$	75	$	179

Summarized Financial Information - Discontinued Operations

Summarized financial information for our Discontinued Operations is as follows:



	Year Ended December 31, 2017
	Conduent			ITO		Total
Revenue	$	—		$	—	$	—

Loss from operations⁽¹⁾	$	(9	)	$	—	$	(9	)
Loss on disposal	—			—		—
Net loss before income taxes	(9		)	—		(9		)
Income tax benefit⁽²⁾	12			—		12
Income from discontinued operations, net of tax	$	3		$	—	$	3

_____________


(1)	2017 includes $9 of Separation related costs.


(2)	Primarily reflects changes in estimates.



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

Loss from operations⁽¹⁾	$	(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	)

_____________


(1)	2016 includes $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.



	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	)

The balance Due from Conduent at December 31, 2016 includes the following amounts:



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

Schedule of Short-term borrowings

+ References

+ Details

Debt (Tables)

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

Short-term borrowings were as follows:



	December 31,
	2017		2016
Notes Payable	$	6	$	4
Current maturities of long-term debt	276		1,007
Total Short-term Debt	$	282	$	1,011

Schedule of Long-term Debt

Long-term debt was as follows:



					December 31,
	Stated Rate		Weighted Average Interest Rates at December 31, 2017⁽³⁾		2017			2016
Xerox Corporation
Senior Notes due 2017⁽¹⁾					$	—		$	500
Senior Notes due 2017⁽¹⁾					—			500
Notes due 2018	0.57	%	0.57	%	1			1
Senior Notes due 2018	6.35	%	6.09	%	265			1,000
Senior Notes due 2019	2.75	%	2.58	%	406			500
Senior Notes due 2019	5.63	%	5.48	%	554			650
Senior Notes due 2020	2.80	%	2.50	%	313			400
Senior Notes due 2020	3.50	%	3.47	%	362			400
Senior Notes due 2020	2.75	%	2.67	%	375			400
Senior Notes due 2021	4.50	%	5.39	%	1,062			1,062
Senior Notes due 2022	4.07	%	4.07	%	300			—
Senior Notes due 2023	3.63	%	3.64	%	1,000			—
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 - Notes					$	5,538		$	6,313
Other Debt
Capital lease obligations			4.11	%	$	35		$	31
Other					—			1
Subtotal - Other Debt					$	35		$	32

Principal debt balance					$	5,573		$	6,345
Unamortized discount					(35		)	(43		)
Debt issuance costs					(32		)	(21		)
Fair value adjustments⁽²⁾
Terminated swaps					4			27
Current swaps					1			4
Less: current maturities					(276		)	(1,007		)
Total Long-term Debt					$	5,235		$	5,305

_____________


(1)	Senior Notes maturing in 2017 were paid in part from funds received in the distribution from Conduent as part of the Separation. Refer to Note 5 - 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:



2018⁽¹⁾		2019		2020		2021		2022		Thereafter		Total
$	274	$	968	$	1,059	$	1,069	$	301	$	1,902	$	5,573

_____________


(1)	Quarterly long-term debt maturities from continuing operations for 2018 are $2, $268, $2 and $2 for the first, second, third and fourth quarters, respectively.

Schedule of Debt Exchange

Debt Exchange

The following principal amounts of each series of old notes were validly tendered and subsequently cancelled:



Maturity Date	Coupon		Principal Amount Exchanged		4.07% Senior Notes Due March 2022		Cash Consideration
Senior Notes due May 15, 2018	6.350	%	$	260	$	130	$	143
Senior Notes due March 15, 2019	2.750	%	94		47		48
Senior Notes due December 15, 2019	5.625	%	96		48		56
Senior Notes due May 15, 2020	2.800	%	87		44		43
Senior Notes due August 20, 2020	3.500	%	38		19		20
Senior Notes due September 1, 2020	2.750	%	25		12		12
Total			$	600	$	300	$	322

Schedule Of Interest Expense Paid on Debt

Interest paid on our short-term and long-term debt amounted to $268, $352 and $365 for the years ended December 31, 2017, 2016 and 2015, respectively.



	Year Ended December 31,
	2017		2016		2015
Interest paid - continuing operations	$	268	$	332	$	356
Interest paid - discontinued operations	—		20		9
Total interest paid on debt	$	268	$	352	$	365

Interest Income and Interest Expense Disclosure

Interest expense and interest income was as follows:



	Year Ended December 31,
	2017		2016		2015
Interest expense⁽¹⁾	$	252	$	309	$	346
Interest income⁽²⁾	302		330		352

_____________


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


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

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=64930739&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21521-112644

+ Details

Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Fair Value Hedges

The following is a summary of our fair value hedges at December 31, 2017:



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	$	1	2.80	%	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, 2017:



Currencies Hedged (Buy/Sell)	Gross Notional Value		Fair Value Asset (Liability)⁽¹⁾
U.S. Dollar/Euro	$	406	$	(4	)
Japanese Yen/U.S. Dollar	356		(5		)
Japanese Yen/Euro	308		(9		)
Euro/U.K. Pound Sterling	263		1
Canadian Dollar/Euro	100		(4		)
Euro/Canadian Dollar	94		(2		)
U.S. Dollar/Canadian Dollar	58		—
Euro/Japanese Yen	38		—
Swiss Franc/Euro	22		—
U.S. Dollar/Russian Ruble	19		—
Euro/Danish Krone	18		—
Mexican Peso/U.S. Dollar	13		—
All Other	93		—
Total Foreign Exchange Hedging	$	1,788	$	(23	)

____________


(1)	Represents the net receivable (payable) amount included in the Consolidated Balance Sheet at December 31, 2017.

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	2017			2016
Derivatives Designated as Hedging Instruments
Foreign exchange contracts – forwards	Other current assets	$	1		$	6
	Other current liabilities	(15		)	(26		)
Interest rate swaps	Other long-term assets	1			4
	Net Designated Derivative Liability	$	(13	)	$	(16	)

Derivatives NOT Designated as Hedging Instruments
Foreign exchange contracts – forwards	Other current assets	$	1		$	82
	Other current liabilities	(10		)	(13		)
	Net Undesignated Derivative (Liability) Asset	$	(9	)	$	69

Summary of Derivatives	Total Derivative Assets	$	3		$	92
	Total Derivative Liabilities	(25		)	(39		)
	Net Derivative (Liability) Asset	$	(22	)	$	53

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 (Loss) Gain Recognized in Income	Derivative (Loss) Gain Recognized in Income								Hedged Item Gain (Loss) Recognized in Income
Derivatives in Fair Value Relationships	Location of (Loss) Gain Recognized in Income	2017			2016			2015		2017		2016		2015
Interest rate contracts	Interest expense	$	(3	)	$	(3	)	$	2	$	3	$	3	$	(2	)

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



	Year Ended December 31,
Derivatives in Cash Flow Hedging Relationships	Derivative (Loss) Gain Recognized in OCI (Effective Portion)							Location of Derivative Gain (Loss) Reclassified from AOCI into Income (Effective Portion)	(Loss) Gain Reclassified from AOCI to Income (Effective Portion)
Derivatives in Cash Flow Hedging Relationships	2017			2016		2015			2017			2016		2015
Foreign exchange contracts – forwards/options	$	(28	)	$	20	$	17	Cost of sales	$	(35	)	$	42	$	(23	)

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

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



		Year Ended December 31,
Derivatives NOT Designated as Hedging Instruments	Location of Derivative (Loss) Gain	2017			2016		2015
Foreign exchange contracts – forwards	Other expense – Currency (losses) gains, net	$	(44	)	$	172	$	17

Fair Value of Financial Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

Schedule of Fair Value of Financial Assets and Liabilities



	As of December 31,
	2017		2016
Assets
Foreign exchange contracts - forwards	$	2	$	88
Interest rate swaps	1		4
Deferred compensation investments in mutual funds	18		15
Total	$	21	$	107
Liabilities
Foreign exchange contracts - forwards	$	25	$	39
Deferred compensation plan liabilities	19		17
Total	$	44	$	56

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, 2017				December 31, 2016
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Cash and cash equivalents	$	1,293	$	1,293	$	2,223	$	2,223
Accounts receivable, net	1,357		1,357		961		961
Short-term debt	282		283		1,011		1,015
Long-term debt	5,235		5,373		5,305		5,438

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.

Schedule of Net Funded Status

Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2017

Defined Benefit Plan [Abstract]



	Pension Benefits
	U.S. Plans						Non-U.S. Plans						Retiree Health
	2017			2016			2017			2016			2017			2016
Change in Benefit Obligation:
Benefit obligation, January 1	$	4,161		$	4,126		$	6,160		$	6,308		$	761		$	855
Service cost	2			4			29			31			5			6
Interest cost	226			184			158			195			28			32
Plan participants' contributions	—			—			4			4			2			1
Actuarial loss (gain)	392			114			(29		)	636			(16		)	(75		)
Currency exchange rate changes	—			—			635			(774		)	10			4
Plan Amendments/Curtailments	—			—			(4		)	—			—			—
Benefits paid/settlements	(606		)	(275		)	(246		)	(234		)	(66		)	(62		)
Other	5			8			(4		)	(6		)	(1		)	—
Benefit Obligation, December 31	$	4,180		$	4,161		$	6,703		$	6,160		$	723		$	761

Change in Plan Assets:
Fair value of plan assets, January 1	$	2,774		$	2,806		$	5,384		$	5,353		$	—		$	—
Actual return on plan assets	381			220			453			804			—			—
Employer contributions	675			24			161			154			64			61
Plan participants' contributions	—			—			4			4			2			1
Currency exchange rate changes	—			—			557			(694		)	—			—
Benefits paid/settlements	(606		)	(275		)	(246		)	(234		)	(66		)	(62		)
Other	—			(1		)	(5		)	(3		)	—			—
Fair Value of Plan Assets, December 31	$	3,224		$	2,774		$	6,308		$	5,384		$	—		$	—

Net Funded Status at December 31⁽¹⁾	$	(956	)	$	(1,387	)	$	(395	)	$	(776	)	$	(723	)	$	(761	)

Amounts Recognized in the Consolidated Balance Sheets:
Other long-term assets	$	—		$	—		$	193		$	17		$	—		$	—
Accrued compensation and benefit costs	(26		)	(24		)	(25		)	(22		)	(61		)	(63		)
Pension and other benefit liabilities	(930		)	(1,363		)	(563		)	(771		)	—			—
Post-retirement medical benefits	—			—			—			—			(662		)	(698		)
Net Amounts Recognized	$	(956	)	$	(1,387	)	$	(395	)	$	(776	)	$	(723	)	$	(761	)

_____________


(1)	Includes under-funded and unfunded 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
	2017			2016			2017			2016			2017			2016
Net actuarial loss	$	1,178		$	1,094		$	1,562		$	1,741		$	22		$	37
Prior service credit	(7		)	(9		)	(28		)	(28		)	(26		)	(29		)
Total Pre-tax Loss	$	1,171		$	1,085		$	1,534		$	1,713		$	(4	)	$	8

Accumulated Benefit Obligation	$	4,179		$	4,161		$	6,483		$	5,931

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, 2017						December 31, 2016
	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.	$	3,830	$	3,829	$	3,224	$	3,820	$	3,820	$	2,774
Non U.S.	814		799		723		4,535		4,368		4,194

Unfunded Plans:
U.S.	$	350	$	350	$	—	$	341	$	341	$	—
Non U.S.	496		485		—		445		436		—

Total Underfunded and Unfunded Plans:
U.S.	$	4,180	$	4,179	$	3,224	$	4,161	$	4,161	$	2,774
Non U.S.	1,310		1,284		723		4,980		4,804		4,194
Total	$	5,490	$	5,463	$	3,947	$	9,141	$	8,965	$	6,968

Schedule of Defined Benefit Pension Assets and Obligations by Geography

Our pension plan assets and benefit obligations at December 31, 2017 were as follows:



	Fair Value of Pension Plan Assets		Pension Benefit Obligations		Net Funded Status
U.S. funded	$	3,224	$	3,830	$	(606	)
U.S. unfunded	—		350		(350		)
Total U.S.	$	3,224	$	4,180	$	(956	)
U.K.	4,098		3,948		150
Canada	749		777		(28		)
Other	1,461		1,978		(517		)
Total	$	9,532	$	10,883	$	(1,351	)

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
	2017			2016			2015			2017			2016			2015			2017			2016			2015
Components of Net Periodic Benefit Costs:
Service cost	$	2		$	4		$	4		$	29		$	31		$	32		$	5		$	6		$	7
Interest cost⁽¹⁾	226			184			80			158			195			203			28			32			34
Expected return on plan assets⁽²⁾	(227		)	(190		)	(79		)	(221		)	(249		)	(284		)	—			—			—
Recognized net actuarial loss	21			26			24			79			65			70			1			2			1
Amortization of prior service credit	(2		)	(2		)	(2		)	(4		)	(3		)	4			(4		)	(5		)	(18		)
Recognized settlement loss	133			65			88			2			1			1			—			—			—
Recognized curtailment gain	—			—			—			(2		)	—			—			—			—			(22		)
Defined Benefit Plans	153			87			115			41			40			26			30			35			2
Defined contribution plans	25			30			33			29			31			33			n/a			n/a			n/a
Net Periodic Benefit Cost	178			117			148			70			71			59			30			35			2

Other changes in plan assets and benefit obligations recognized in Other Comprehensive Income:
Net actuarial (gain) loss	238			84			(74		)	(273		)	76			204			(16		)	(75		)	(4		)
Prior service credit	—			—			—			(1		)	—			(16		)	—			—			(32		)
Amortization of net actuarial loss	(154		)	(92		)	(112		)	(81		)	(66		)	(71		)	(1		)	(2		)	(1		)
Amortization of net prior service credit	2			2			2			4			3			(4		)	4			5			18
Curtailment gain	—			—			—			—			—			—			—			—			22
Total Recognized in Other Comprehensive Income	86			(6		)	(184		)	(351		)	13			113			(13		)	(72		)	3
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income	$	264		$	111		$	(36	)	$	(281	)	$	84		$	172		$	17		$	(37	)	$	5

_____________


(1)	Interest cost for Pension Benefits includes interest expense on non-TRA obligations of $257, $296 and $311 and interest expense (income) directly allocated to TRA participant accounts of $127, $83 and $(25) for the years ended December 31, 2017, 2016 and 2015, respectively.


(2)	Expected return on plan assets includes expected investment income on non-TRA assets of $321, $356 and $388 and actual investment income (loss) on TRA assets of $127, $83 and $(25) for the years ended December 31, 2017, 2016 and 2015, 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, 2017
	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	$	2	$	—		$	—	$	—	$	2		$	686	$	—	$	—	$	—	$	686
Equity Securities:
U.S.	104		—			—		31		135			310		24		—		—		334
International	134		—			—		52		186			441		676		—		127		1,244
Fixed Income Securities:
U.S. treasury securities	—		384			—		—		384			—		42		—		—		42
Debt security issued by government agency	—		127			—		—		127			—		1,938		—		—		1,938
Corporate bonds	—		1,866			—		—		1,866			—		784		—		—		784
Asset backed securities	—		—			—		—		—			—		—		—		—		—
Derivatives	—		(20		)	—		—		(20		)	—		74		—		—		74
Real estate	24		—			—		11		35			—		—		137		176		313
Private equity/venture capital	—		—			—		433		433			—		58		7		662		727
Guaranteed insurance contracts	—		—			—		—		—			—		—		100		—		100
Other⁽²⁾	33		—			—		43		76			6		60		—		—		66
Total Fair Value of Plan Assets	$	297	$	2,357		$	—	$	570	$	3,224		$	1,443	$	3,656	$	244	$	965	$	6,308

_____________


(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 $33 U.S. and $15 Non-U.S., respectively, such as due to/from broker, interest receivables and accrued expenses.



	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 (liabilities) assets of $15 U.S. and $6 Non-U.S., respectively, such as due to/from broker, interest receivables and accrued expenses.

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, 2015	$	17		$	145		$	4		$	120		$	269
Purchases	—			1			2			2			5
Sales	(3		)	(13		)	(1		)	(12		)	(26		)
Realized gains	—			6			—			1			7
Unrealized losses	(2		)	(5		)	(4		)	(3		)	(12		)
Currency translation	—			(13		)	5			(4		)	(12		)
Balance at December 31, 2016	$	12		$	121		$	6		$	104		$	231
Purchases	—			1			—			—			1
Transfers out of Level 3	(7		)	—			—			—			—
Sales	(5		)	—			—			(2		)	(2		)
Realized losses	(9		)	(1		)	—			—			(1		)
Unrealized gains (losses)	9			7			(16		)	(15		)	(24		)
Currency translation	—			9			17			13			39
Balance at December 31, 2017	$	—		$	137		$	7		$	100		$	244

Schedule of Allocation of Plan Assets

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



	2017		2016
	U.S.	Non-U.S.	U.S.	Non-U.S.
Equity investments	12%	24%	30%	28%
Fixed income investments	73%	45%	48%	45%
Real estate	3%	5%	6%	5%
Private equity/venture capital	6%	12%	8%	9%
Other	6%	14%	8%	13%
Total Investment Strategy	100%	100%	100%	100%

Defined Benefit and Retiree Health Pension Plans, actual and expected cash contributions [Table Text Block]

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



	Year Ended December 31,
	2017		Estimated 2018
U.S. Plans	$	675	$	76
Non-U.S. Plans	161		116
Total	$	836	$	192

Retiree Health	$	64	$	62

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
2018	$	528	$	241	$	769	$	62
2019	301		246		547		60
2020	312		252		564		58
2021	293		260		553		57
2022	315		266		581		55
Years 2023-2027	1,456		1,436		2,892		239

Schedule of Assumptions Used

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



	Pension Benefits
	2017				2016				2015
	U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.
Discount rate	3.6	%	2.3	%	4.0	%	2.5	%	4.3	%	3.3	%
Rate of compensation increase	0.2	%	2.6	%	0.2	%	2.6	%	0.2	%	2.7	%



	Retiree Health
	2017		2016		2015
Discount rate	3.5	%	3.9	%	4.1	%

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



	Pension Benefits
	2018				2017				2016				2015
	U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.
Discount rate	3.6	%	2.3	%	4.0	%	2.5	%	4.3	%	3.3	%	3.9	%	3.1	%
Expected return on plan assets	5.8	%	3.8	%	7.0	%	4.1	%	7.5	%	4.8	%	7.5	%	5.2	%
Rate of compensation increase	0.2	%	2.6	%	0.2	%	2.6	%	0.2	%	2.7	%	0.2	%	2.6	%



	Retiree Health
	2018		2017		2016		2015
Discount rate	3.5	%	3.9	%	4.1	%	3.8	%

_____________

Schedule of Health Care Cost Trend Rates

Assumed health care cost trend rates were as follows:



	December 31,
	2017		2016
Health care cost trend rate assumed for next year	6.8	%	7.2	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)	4.8	%	4.8	%
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, 2017

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,
	2017		2016		2015
Domestic income	$	399	$	415	$	613
Foreign income	171		153		311
Income Before Income Taxes	$	570	$	568	$	924

Schedule of Components of Income Tax Expense (Benefit)

Provision for income taxes from continuing operations were as follows:



	Year Ended December 31,
	2017			2016			2015
Federal Income Taxes
Current	$	7		$	(15	)	$	(225	)
Deferred⁽¹⁾	411			(4		)	300
Foreign Income Taxes
Current	62			71			73
Deferred	(21		)	(13		)	7
State Income Taxes
Current	13			15			(38		)
Deferred	9			8			76
Total Provision	$	481		$	62		$	193

_____________


(1)	Includes $400 estimated impact of the Tax Cuts and Jobs Act (the "Tax Act").

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,
	2017		2016		2015
U.S. federal statutory income tax rate	35.0	%	35.0	%	35.0	%
Nondeductible expenses	1.2	%	2.9	%	1.1	%
Effect of tax law changes	70.2	%	1.2	%	(1.0	)%
Change in valuation allowance for deferred tax assets	1.0	%	(1.4	)%	(1.6	)%
State taxes, net of federal benefit	2.3	%	3.0	%	2.2	%
Audit and other tax return adjustments	(8.0	)%	(4.1	)%	1.3	%
Tax-exempt income, credits and incentives	(2.9	)%	(4.0	)%	(1.8	)%
Foreign rate differential adjusted for U.S. taxation of foreign profits⁽¹⁾	(15.2	)%	(22.6	)%	(15.3	)%
Other	0.9	%	0.9	%	1.0	%
Effective Income Tax Rate	84.5	%	10.9	%	20.9	%

_____________


(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,
	2017			2016			2015
Pre-tax income	$	481		$	62		$	193
Discontinued operations⁽¹⁾	(12		)	(250		)	(134		)
Common shareholders' equity:
Changes in defined benefit plans	63			15			59
Stock option and incentive plans, net	—			—			(18		)
Cash flow hedges	5			(8		)	15
Translation adjustments	1			2			—
Total Income Tax Expense (Benefit)	$	538		$	(179	)	$	115

_____________


(1)	Refer to Note 5 - 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:



	2017			2016			2015
Balance at January 1	$	165		$	222		$	207
Additions (Reductions) related to current year	1			(9		)	36
Additions related to prior years positions	10			—			—
Reductions related to prior years positions	(46		)	(31		)	(5		)
Settlements with taxing authorities⁽¹⁾	(5		)	—			(6		)
Reductions related to lapse of statute of limitations	(3		)	(2		)	(9		)
Currency	3			(2		)	(1		)
Tax Positions assumed in Conduent Separation	—			(13		)	—
Balance at December 31	$	125		$	165		$	222

_____________


(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,
	2017			2016
Deferred Tax Assets
Research and development	$	143		$	289
Post-retirement medical benefits	183			276
Net operating losses	432			407
Operating reserves, accruals and deferrals	128			190
Tax credit carryforwards	646			751
Deferred and share-based compensation	43			76
Pension	308			660
Depreciation	106			8
Other	62			73
Subtotal	2,051			2,730
Valuation allowance	(435		)	(416		)
Total	$	1,616		$	2,314

Deferred Tax Liabilities
Unearned income and installment sales	$	344		$	633
Intangibles and goodwill	134			200
Unremitted earnings of foreign subsidiaries	140			9
Other	14			39
Total	$	632		$	881

Total Deferred Taxes, Net	$	984		$	1,433

Shareholders' Equity (Tables)

12 Months Ended

Dec. 31, 2017

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	173,807

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, 2014	281,089	1,903
Stock based compensation plans, net	2,823	—
Acquisition of Treasury stock	—	28,800
Cancellation of Treasury stock	(30,703)	(30,703)
Balance at December 31, 2015	253,209	—
Stock based compensation plans, net	385	—
Balance at December 31, 2016	253,594	—
Stock based compensation plans, net	1,019	—
Balance at December 31, 2017	254,613	—

Schedule of Stock-based Compensation Expense, Tax Effect

Stock-based compensation expense was as follows:



	Year Ended December 31,
	2017		2016		2015
Stock-based compensation expense, pre-tax	$	52	$	50	$	27
Income tax benefit recognized in earnings	20		19		10

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

Summary of Stock-based Compensation Activity



	2017				2016				2015
(shares in thousands)	Shares		Weighted Average Grant Date Fair Value		Shares⁽¹⁾		Weighted Average Grant Date Fair Value⁽¹⁾⁽²⁾		Shares⁽¹⁾		Weighted Average Grant Date Fair Value⁽¹⁾⁽²⁾
Restricted Stock Units
Outstanding at January 1	1,807		$	30.10	598		$	44.20	3,049		$	38.00
Granted	1,436		31.39		1,793		38.28		200		44.32
Vested	(117	)	36.99		(79	)	38.48		(2,548	)	31.44
Cancelled	(270	)	29.03		(137	)	40.48		(103	)	37.08
Separation of Conduent	—		—		(786	)	40.28		—		—
Shares granted in equity conversion	—		—		418		30.10		—		—
Outstanding at December 31	2,856		30.65		1,807		30.10		598		44.20

Performance Shares
Outstanding at January 1	5,054		$	33.98	5,802		$	46.68	5,180		$	45.44
Granted	1,349		32.80		1,320		37.40		2,368		42.72
Vested	(1,413	)	37.44		(8	)	45.32		(817	)	31.60
Cancelled	(1,873	)	34.59		(1,234	)	47.36		(929	)	42.96
Separation of Conduent	—		—		(1,974	)	44.36		—		—
Shares granted in equity conversion	—		—		1,148		33.98		—		—
Outstanding at December 31	3,117		31.54		5,054		33.98		5,802		46.68

Stock Options
Outstanding at January 1	—		$	—	780		$	27.48	1,529		$	28.00
Canceled/expired	—		—		(98	)	27.96		(101	)	29.72
Exercised	—		—		(306	)	28.12		(648	)	28.36
Separation of Conduent	—		—		(376	)	26.80		—		—
Outstanding at December 31	—		—		—		—		780		27.48
Exercisable at December 31	—		—		—		—		780		27.48

____________


(1)	Share activity and weighted average grant date fair values include immaterial rounding due to our one-for-four reverse stock split.


(2)	Exercise price for stock options.

Schedule of Unrecognized Compensation Cost, Nonvested Awards

The total unrecognized compensation cost related to non-vested stock-based awards at December 31, 2017 was as follows:

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

The aggregate intrinsic value of outstanding RSU and PS awards was as follows:



Awards	December 31, 2017
Restricted Stock Units	$	83
Performance Shares	91

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, 2017						December 31, 2016						December 31, 2015
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	$	3	$	—	$	1	$	109	$	—	$	33
Performance Shares	40		—		12		—		—		—		35		—		12
Stock Options	—		—		—		3		9		1		14		19		5

Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2017

Other Comprehensive Income [Abstract]

Schedule of Amounts Recognized in Other Comprehensive Income (Loss)

Other Comprehensive Income (Loss) is comprised of the following:



	Year Ended December 31,
	2017						2016						2015
	Pre-tax			Net of Tax			Pre-tax			Net of Tax			Pre-tax			Net of Tax
Translation Adjustments Gains (Losses)	$	484		$	483		$	(345	)	$	(347	)	$	(651	)	$	(651	)
Unrealized (Losses) Gains:
Changes in fair value of cash flow hedges (losses) gains	(28		)	(23		)	18			14			13			12
Changes in cash flow hedges reclassed to earnings⁽¹⁾	35			25			(40		)	(28		)	28			13
Other losses	(1		)	(1		)	(1		)	(1		)	(3		)	(2		)
Net Unrealized Gains (Losses)	6			1			(23		)	(15		)	38			23

Defined Benefit Plans Gains (Losses)
Net actuarial/prior service gains (losses)	52			64			(118		)	(87		)	(73		)	(86		)
Prior service amortization/curtailment⁽²⁾	(10		)	(7		)	(10		)	(6		)	(38		)	(23		)
Actuarial loss amortization/settlement⁽²⁾	236			158			160			109			186			126
Fuji Xerox changes in defined benefit plans, net⁽³⁾	29			29			(93		)	(93		)	21			21
Other (losses) gains⁽⁴⁾	(138		)	(138		)	202			203			116			115
Changes in Defined Benefit Plans Gains	169			106			141			126			212			153

Other Comprehensive Income (Loss)	659			590			(227		)	(236		)	(401		)	(475		)
Less: Other comprehensive income (loss) attributable to noncontrolling interests	1			1			(3		)	(3		)	(1		)	(1		)
Other Comprehensive Income (Loss) Attributable to Xerox	$	658		$	589		$	(224	)	$	(233	)	$	(400	)	$	(474	)

_____________


(1)	Reclassified to Cost of sales - refer to Note 15 - Financial Instruments for additional information regarding our cash flow hedges.


(2)	Reclassified to Total Net Periodic Benefit Cost - refer to Note 17 - 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 Loss

AOCL is comprised of the following:



	December 31,
	2017			2016			2015
Cumulative translation adjustments	$	(1,781	)	$	(2,263	)	$	(2,390	)
Other unrealized (losses) gains, net	(12		)	(13		)	1
Benefit plans net actuarial losses and prior service credits⁽¹⁾	(1,955		)	(2,061		)	(2,241		)
Total Accumulated Other Comprehensive Loss Attributable to Xerox	$	(3,748	)	$	(4,337	)	$	(4,630	)

_____________


(1)	Includes our share of Fuji Xerox.

Earnings (Loss) per Share (Tables)

12 Months Ended

Dec. 31, 2017

Earnings Per Share [Abstract]

Basic and Diluted Earnings (Loss) per Share

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



	Year Ended December 31,
	2017			2016			2015
Basic Earnings (Loss) per Share:
Net income from continuing operations attributable to Xerox	$	192		$	622		$	822
Accrued dividends on preferred stock	(14		)	(24		)	(24		)
Adjusted Net income from continuing operations available to common shareholders	$	178		$	598		$	798
Net income (loss) from discontinued operations attributable to Xerox	3			(1,093		)	(374		)
Adjusted Net income (loss) available to common shareholders	$	181		$	(495	)	$	424
Weighted-average common shares outstanding	254,341			253,391			266,131
Basic Earnings (Loss) per Share:
Continuing operations	$	0.70		$	2.36		$	3.00
Discontinued operations	0.01			(4.31		)	(1.41		)
Basic Earnings (Loss) per Share	$	0.71		$	(1.95	)	$	1.59

Diluted Earnings (Loss) per Share:
Net income from continuing operations attributable to Xerox	$	192		$	622		$	822
Accrued dividends on preferred stock	(14		)	(24		)	(24		)
Adjusted net income from continuing operations available to common shareholders	$	178		$	598		$	798
Net income (loss) from discontinued operations attributable to Xerox	3			(1,093		)	(374		)
Adjusted Net income (loss) available to common shareholders	$	181		$	(495	)	$	424
Weighted-average common shares outstanding	254,341			253,391			266,131
Common shares issuable with respect to:
Stock options	—			174			324
Restricted stock and performance shares	2,229			2,430			2,601
Adjusted Weighted average common shares outstanding	256,570			255,995			269,056

Diluted Earnings (Loss) per Share:
Continuing operations	$	0.70		$	2.33		$	2.97
Discontinued operations	0.01			(4.26		)	(1.39		)
Diluted Earnings (Loss) per Share	$	0.71		$	(1.93	)	$	1.58

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	—			202			456
Restricted stock and performance shares	3,706			5,430			4,402
Convertible preferred stock	6,742			6,742			6,742
Total Anti-Dilutive Securities	10,448			12,374			11,600

Dividends per Common Share	$	1.00		$	1.24		$	1.12

Basis of Presentation and Summary of Significant Accounting Policies Reverse Stock Split (Details) $ in Millions		12 Months Ended
	Jun. 14, 2017 shares	Dec. 31, 2017 service_offering shares	Jun. 30, 2017 USD ($)
Class of Stock [Line Items]
Bundled lease arrangements, interest rate		0.25
Number of Reporting Units \| service_offering		1
Stockholders' Equity Note, Stock Split, Conversion Ratio	0.25
Common Stock, Shares Authorized		437,500,000
Common Stock [Member]
Class of Stock [Line Items]
Common Stock Shares Authorized Prior to Reverse Split	1,750,000,000
Common Stock [Member] \| Reverse Stock Split [Member]
Class of Stock [Line Items]
Stockholders' Equity Note, Stock Split, Conversion Ratio	0.25
Common Stock, Shares Authorized	437,500,000
Common Stock Reclassed to Additional Paid-in Capital \| $			$ 760

Basis of Presentation and Summary of Significant Accounting Policies (Details) $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($) service_offering country	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Revenue, Net	$ 10,265	$ 10,771	$ 11,465
Number of Countries in which Entity Operates \| country	160
Out-of-Period Adjustment (non-material)			16
Provisions for restructuring and related costs	$ 220	264	27
Provision for receivables	46	43	54
Provisions for obsolete and excess inventory	27	28	30
Provision for product warranty liability	15	15	22
Depreciation and obsolescence of equipment on operating leases	265	276	286
Depreciation of buildings and equipment	136	148	151
Amortization of internal use software	65	73	83
Amortization of product software	4	4	4
Amortization of acquired intangible assets	53	58	60
Amortization of customer contract costs	4	4	6
Defined pension benefits - net periodic benefit cost	194	127	141
Income tax expense	$ 481	62	193
Bundled lease arrangements, interest rate	0.25
Economic life of leased product	5 years
Sustaining engineering costs	$ 90	95	126
Number of Reportable Segments \| service_offering	1
Number of Reporting Units \| service_offering	1
Expected return on plan assets period	2 years
Accounting Standards Update 2014-09 [Member]
Revenue reclassification	$ 50
Deferred Sales Commission	$ 175
Amortization period of deferred sales commission	4 years
Accounting Standards Update 2016-02 [Member]
Operating Leases, Future Minimum Payments Due	$ 450
Accounting Standards Update 2016-15 [Member]
Collections on Beneficial Interests Received in sales of Accounts Receivable and Finance Receivables	234	270
Accounting Standards Update 2016-18 [Member]
Restricted Cash and Cash Equivalents	75	179
Accounting Standards Update 2016-09 [Member]
Employee Service Share-based Compensation, Tax Benefit from Exercise of Stock Options	3
Pension Plan [Member]
Defined pension benefits - net periodic benefit cost	194	127	141
Pension Plan [Member] \| Domestic Plan [Member]
Defined pension benefits - net periodic benefit cost	153	87	115
Other Postretirement Benefits Plan [Member]
Defined pension benefits - net periodic benefit cost	$ 30	$ 35	$ 2
BPO [Member]
Discontinued Operation, percentage of business divested		100.00%
Minimum [Member]
Equity Method Investment, Ownership Percentage	20.00%
Maximum [Member]
Equity Method Investment, Ownership Percentage	50.00%

Correction of Fuji Xerox Misstatement in Prior Period Financial Statements (Details)
$ / shares in Units, $ in Millions, ¥ in Billions

3 Months Ended

6 Months Ended

12 Months Ended

Mar. 31, 2017

USD ($)

¥ / $

Jun. 30, 2017

JPY (¥)

Jun. 30, 2017

USD ($)

Dec. 31, 2017

USD ($)

$ / shares

Dec. 31, 2016

USD ($)

$ / shares

Dec. 31, 2015

USD ($)

$ / shares

Dec. 31, 2014

USD ($)

Yen/U.S. Dollar Spot Exchange Rate | ¥ / $

111.89

Total Equity in Net Income of Unconsolidated Affiliates

^[1]

$ 115

$ 127

$ 109

Net (Loss) Income Attributable to Xerox

204

633

840

Net (Loss) Income

207

(460)

466

195

(471)

448

Net income from continuing operations attributable to Xerox

$ 192

$ 622

$ 822

Continuing Operations (in dollars per share) | $ / shares

$ 0.70

$ 2.36

^[2]

$ 3.00

^[2]

Earnings per share from continuing operations, Diluted | $ / shares

0.71

(1.95)

^[2]

1.59

^[2]

0.70

2.33

^[2]

2.97

^[2]

Diluted Earnings (Loss) per Share | $ / shares

$ 0.71

$ (1.93)

^[2]

$ 1.58

^[2]

Other Comprehensive Loss, Net

^[3]

$ 483

$ (347)

$ (651)

^[3]

590

(236)

(475)

Other Comprehensive Loss, Net Attributable to Xerox

^[3]

589

(233)

(474)

Comprehensive Loss, Net Attributable to Xerox

797

(696)

(9)

784

(704)

(26)

Accumulated other comprehensive loss

1,404

1,294

1,283

Total Assets

15,946

18,051

25,442

Retained earnings

4,856

4,934

9,575

(3,748)

(4,337)

(4,630)

Xerox shareholders’ equity

5,256

4,709

8,975

Total Equity

5,293

4,747

9,018

$ 10,671

Total Liabilities and Equity

15,946

18,051

25,442

Undistributed equity in net income of unconsolidated affiliates

$ (18)

(75)

(53)

Fuji Xerox

Total Equity in Net Income of Unconsolidated Affiliates

Ownership percentage

25.00%

$ 102

114

$ 1,366

1,219

Adjustment [Member]

Total Equity in Net Income of Unconsolidated Affiliates

(26)

Net (Loss) Income Attributable to Xerox

(26)

Net (Loss) Income

(26)

(26)

Net income from continuing operations attributable to Xerox

$ 6

$ (26)

Continuing Operations (in dollars per share) | $ / shares

$ 0.03

$ (0.10)

Earnings per share from continuing operations, Diluted | $ / shares

0.03

(0.10)

0.02

(0.09)

Diluted Earnings (Loss) per Share | $ / shares

$ 0.03

$ (0.09)

Other Comprehensive Loss, Net

$ (1)

$ 9

(1)

Other Comprehensive Loss, Net Attributable to Xerox

(1)

Comprehensive Loss, Net Attributable to Xerox

(17)

(17)

Accumulated other comprehensive loss

(94)

(99)

Total Assets

(94)

(99)

Retained earnings

(105)

(111)

Xerox shareholders’ equity

(94)

(99)

Total Equity

(94)

(99)

Total Liabilities and Equity

(94)

(99)

Undistributed equity in net income of unconsolidated affiliates

(6)

Adjustment [Member] | Fuji Xerox

Cumulative Effect on Retained Earnings, Net of Tax

As Reported [Member]

Total Equity in Net Income of Unconsolidated Affiliates

121

135

Net (Loss) Income Attributable to Xerox

627

866

Net (Loss) Income

(466)

492

(477)

474

Net income from continuing operations attributable to Xerox

$ 616

$ 848

Continuing Operations (in dollars per share) | $ / shares

$ 2.33

$ 3.10

Earnings per share from continuing operations, Diluted | $ / shares

(1.98)

1.69

2.31

3.06

Diluted Earnings (Loss) per Share | $ / shares

$ (1.96)

$ 1.67

Other Comprehensive Loss, Net

$ (346)

$ (660)

(235)

(484)

Other Comprehensive Loss, Net Attributable to Xerox

(232)

(483)

Comprehensive Loss, Net Attributable to Xerox

(701)

(709)

(9)

Accumulated other comprehensive loss

1,388

1,382

Total Assets

18,145

25,541

Retained earnings

5,039

9,686

(4,348)

(4,642)

Xerox shareholders’ equity

4,803

9,074

Total Equity

4,841

9,117

Total Liabilities and Equity

18,145

25,541

Undistributed equity in net income of unconsolidated affiliates

$ (69)

$ (79)

Parent Company - Fujifilm Holdings Corporation[Member] | Adjustment [Member] | Fuji Xerox

Out-of-Period Adjustment - Fuji Xerox

¥ 40

$ 360

Non Parent Equity Investment Owner - Xerox Corporation[Member] | Adjustment [Member] | Fuji Xerox

Out-of-Period Adjustment - Fuji Xerox

$ 90

[1]	Equity in net income of unconsolidated affiliates has been revised for all applicable prior periods presented throughout this document. Refer to Note 2 - Correction of Fuji Xerox Misstatement in Prior Period Financial Statements for additional information on this revision.
[2]	Reflects our one-for-four reverse stock split that became effective on June 14, 2017. Refer to Note 1 - Basis of Presentation and Summary of Significant Accounting Policies for further information.
[3]	Refer to Note 22 - Other Comprehensive Income (Loss) for gross components of Other Comprehensive Income (Loss), reclassification adjustments out of Accumulated Other Comprehensive Loss and related tax effects.

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

12 Months Ended

Dec. 31, 2017

USD ($)

service_offering

Dec. 31, 2016

USD ($)

Dec. 31, 2015

USD ($)

Number of Reportable Segments | service_offering

$ 10,265

$ 10,771

$ 11,465

^[1]

1,292

1,361

United States

6,064

6,403

6,734

^[1]

770

824

Europe

2,697

2,861

3,155

^[1]

355

359

Other areas

1,504

1,507

$ 1,576

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

^[1]

$ 167

$ 178

[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.

Acquisitions (Details) $ in Millions	12 Months Ended
Acquisitions (Details) $ in Millions	Dec. 31, 2017 USD ($) business	Dec. 31, 2016 USD ($) business	Dec. 31, 2015 USD ($) business
Schedule of Business Acquisitions, by Acquisition [Line Items]
Payments to Acquire Businesses, Net of Cash Acquired	$ 87	$ 30	$ 13
Global Imaging Systems, Equipment dealers [Domain]
Schedule of Business Acquisitions, by Acquisition [Line Items]
Number of Businesses Acquired (in businesses) \| business	2	2	2
Business Combination, Acquisition of 100 Percent of acquired company	100.00%	100.00%	100.00%
Revenue of Acquiree since Acquisition Date, Actual	$ 54
Goodwill, Expected Tax Deductible Percentage	100.00%
Accounts/finance receivables	$ 8
Goodwill	44
Other assets	18
Total Assets Acquired	98
Liabilities assumed	(11)
Payments to Acquire Businesses, Net of Cash Acquired	87	$ 30	$ 13
Prior year acquisitions [Member]
Schedule of Business Acquisitions, by Acquisition [Line Items]
Revenue of Acquiree since Acquisition Date, Actual		26	14
Acquisitions made current year minus two years [Member]
Schedule of Business Acquisitions, by Acquisition [Line Items]
Revenue of Acquiree since Acquisition Date, Actual	$ 10	$ 10	$ 3
Customer relationships [Member]
Schedule of Business Acquisitions, by Acquisition [Line Items]
Weighted Average Useful Life (Years) Acquired Finite-lived Intangible Asset	10 years
Customer relationships [Member] \| Global Imaging Systems, Equipment dealers [Domain]
Schedule of Business Acquisitions, by Acquisition [Line Items]
Intangible assets:	$ 17
Trademarks
Schedule of Business Acquisitions, by Acquisition [Line Items]
Weighted Average Useful Life (Years) Acquired Finite-lived Intangible Asset	20 years
Trademarks \| Global Imaging Systems, Equipment dealers [Domain]
Schedule of Business Acquisitions, by Acquisition [Line Items]
Intangible assets:	$ 10
Non-compete agreements [Member]
Schedule of Business Acquisitions, by Acquisition [Line Items]
Weighted Average Useful Life (Years) Acquired Finite-lived Intangible Asset	3 years
Non-compete agreements [Member] \| Global Imaging Systems, Equipment dealers [Domain]
Schedule of Business Acquisitions, by Acquisition [Line Items]
Intangible assets:	$ 1

Divestitures (Details)
$ in Millions

3 Months Ended

12 Months Ended

Aug. 01, 2017

USD ($)

Jun. 30, 2015

USD ($)

Dec. 31, 2016

USD ($)

Dec. 31, 2015

USD ($)

Jun. 30, 2015

USD ($)

Dec. 31, 2017

USD ($)

Dec. 31, 2016

USD ($)

Dec. 31, 2015

USD ($)

Dec. 31, 2014

USD ($)

Feb. 01, 2017

USD ($)

Goodwill impairment charge (2)

$ 7

$ 0

$ 7

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

1 year

Cash Distribution, Conduent to Xerox - prior to distribution date

$ 1,800

Debt, Current

1,011

282

$ 1,011

Cash excluded from Balance Sheet

1,000

Long-term debt - Xerox

6,345

5,573

6,345

Proceeds from sale of businesses, net

Loss on disposal

101

Revenue

6,355

7,223

Loss from operations(1)

(9)

^[1]

(1,343)

^[2]

(407)

^[2]

Net income (loss) before income taxes

(9)

(1,343)

(508)

Income tax benefit (expense)

^[4]

^[3]

250

134

Income (loss) from discontinued operations, net of tax

(1,093)

(374)

Total Costs and Expenses

9,695

10,203

10,541

Other current assets

127

Total current assets of discontinued operations

1,002

Total current liabilities of discontinued operations

1,002

Disposal Group, Including Discontinued Operations, Net Assets

3,445

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

Senior Notes due 2017 | Conduent cash paid to Xerox, for Xerox debt repayment [Member]

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

Long-term debt - Xerox

$ 1,000

Conduent [Domain]

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

Goodwill impairment charge (2)

^[5]

935

$ 0

Separation costs

159

Loss on disposal

Revenue

6,355

6,604

Loss from operations(1)

(9)

^[1]

(1,343)

^[2]

(511)

Net income (loss) before income taxes

(9)

(1,343)

(511)

Income tax benefit (expense)

^[3]

250

215

Income (loss) from discontinued operations, net of tax

(1,093)

(296)

Interest expense

Cost of services

5,456

5,923

Other Expenses

2,065

1,192

Total Costs and Expenses

7,521

7,115

Depreciation of buildings and equipment

130

126

Amortization of internal use software

Amortization of product software

Amortization of acquired intangible assets

280

250

Amortization of customer contract costs

108

Operating lease rent expense

378

389

Defined contribution plans

Interest expense (1)

^[6]

Cost of additions to land, buildings and equipment

150

126

Cost of additions to internal use software

Cash and cash equivalents

390

Accounts receivable, net

1,287

Other current assets

239

Total current assets of discontinued operations

1,916

Land, buildings and equipment, net

283

Intangible assets, net

1,144

Goodwill

3,889

Total long-term assets of discontinued operations

477

5,793

Total Assets of Discontinued Operations

7,709

Accounts payable

159

Accrued pension and benefit costs

284

Unearned income

208

Other current liabilities

742

Total current liabilities of discontinued operations

1,421

Other long-term liabilities

173

757

Total long-term liabilities of discontinued operations

2,843

Total Liabilities of Discontinued Operations

4,264

Conduent [Domain] | Current portion of long-term debt [Member]

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

Current portion of long-term debt

Conduent [Domain] | Long-term Debt [Member]

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

Long-term debt

1,913

Conduent [Domain] | Unsecured Debt [Member]

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

Debt, Current

$ 1,000

1,000

ITO [Member]

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

Proceeds from sale of businesses, net

$ 940

Proceeds from Divestiture of Businesses, Net of Cash Divested

$ 930

Capital lease obligations and pension liabilities

$ 85

Loss on disposal

$ 101

(101)

$ 181

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

$ (160)

Discontinue Operations, Additional Tax Expense

$ 44

Revenue

619

Loss from operations(1)

^[1]

^[2]

104

Net income (loss) before income taxes

Income tax benefit (expense)

^[3]

(81)

Income (loss) from discontinued operations, net of tax

$ 0

$ (78)

Naver [Member]

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

Goodwill

$ 6

Sales price of disposal group or unit

Net assets and expenses sold

Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal

Gain on sale of business, net of tax

$ 4

Employees transferred in sale

[1]	2017 includes $9 of Separation related costs.
[2]	2016 includes $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.
[3]	Primarily reflects changes in estimates.
[4]	Refer to Note 5 - Divestitures for additional information regarding discontinued operations.
[5]	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.
[6]	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 year ended December 31, 2016 and 2015.

Accounts Receivable, Net (Details) - USD ($) $ in Millions	12 Months Ended
Accounts Receivable, Net (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued	$ 1,317	$ 1,256
Accounts Receivable, Net	1,357	961
Accounts receivable sold, derecognized and uncollected at balance sheet date	161	531
Accounts receivable sales	1,733	2,267	$ 2,142
Deferred proceeds	164	233	247
Loss on sale of accounts receivable	10	16	$ 13
Accounts Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Invoiced	1,048	651
Accrued	368	374
Allowance for doubtful accounts	(59)	(64)
Other Current Assets
Accounts, Notes, Loans and Financing Receivable [Line Items]
Deferred Proceeds Receivable From Sales Of Accounts Receivable	$ 0	$ 48

Finance Receivables, Net (Details) - USD ($)
$ in Millions

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

^[2]

Allowance for doubtful accounts

Gross receivables

$ 4,354

$ 4,380

Unearned income

(494)

(526)

Subtotal

3,860

3,854

^[1]

Residual values

(108)

(110)

$ (118)

Finance Receivables, Net

3,752

3,744

Less: Billed portion of finance receivables, net

112

Less: Current portion of finance receivables not billed, net

1,317

1,256

Finance Receivables Due After One Year, Net

2,323

2,398

Billed Contracts Receivable

112

Finance receivables contractual maturity, current

1,686

Finance receivables contractual maturity, in two years

1,211

Finance receivables contractual maturities, in three years

827

Finance receivables contractual maturities, in four years

454

Finance receivables contractual maturities, in five years

163

Finance receivables contractual maturities, thereafter

Total contractual maturities

$ 4,354

$ 4,380

[1]	The December 31, 2016 amounts have been reclassified to conform to 2017 presentation.
[2]	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 - Allowance for Credit Losses (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Financing Receivable, Allowance for Credit Losses [Line Items]

Finance receivables lease portfolio average maturity - low - years

2 years

Finance receivable lease portfolio average maturity - high - years

3 years

Financing Receivable, Allowance for Credit Losses [Roll Forward]

$ 110

$ 118

^[1]

(28)

(35)

^[2]

Financing Receivable, Collectively Evaluated for Impairment

108

110

^[3]

3,860

3,854

Allowance for credit losses not included in the impairment evaluation

108

110

United States

Financing Receivable, Allowance for Credit Losses [Roll Forward]

^[1]

(12)

^[2]

Financing Receivable, Collectively Evaluated for Impairment

^[1]

^[3]

2,029

2,138

Canada

Financing Receivable, Allowance for Credit Losses [Roll Forward]

^[1]

(5)

(8)

^[2]

Financing Receivable, Collectively Evaluated for Impairment

^[3]

397

378

Europe

Financing Receivable, Allowance for Credit Losses [Roll Forward]

^[1]

(11)

(15)

^[2]

(4)

Financing Receivable, Collectively Evaluated for Impairment

^[3]

1,362

1,286

Financing Receivable, Allowance for Credit Losses [Roll Forward]

^[1],[4]

^[4]

^[4]

^[2],[4]

Financing Receivable, Collectively Evaluated for Impairment

^[1],[4]

^[3],[4]

$ 72

$ 52

[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 the impacts of foreign currency translation and adjustments to reserves necessary to reflect events of non-payment such as customer accommodations and contract terminations.
[3]	Total Finance receivables exclude the allowance for credit losses of $108 and $110 at December 31, 2017 and 2016, respectively.
[4]	Includes developing market countries and smaller units.

Finance Receivables, Net - Sales of Finance Receivables (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2013	Dec. 31, 2012
Finance Receivables Sold and Derecognized		$ 76
Finance Receivable Beneficial Interest Weighted Average Life	2 years
Other Current Assets
Beneficial interests received	$ 0	$ 24
Finance Receivables
Net carrying value (NCV) sold			$ 676	$ 682
Allowance included in NCV			17	18
Cash proceeds received			635	630
Beneficial interests received			$ 86	$ 101

Inventories and Equipment on Operating Leases, Net (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Inventories, net [Abstract]
Finished goods	$ 777	$ 713
Work-in-process	49	47
Raw materials	89	81
Total Inventories	915	841
Inventories and Equipment on Operating Lease, Net [Abstract]
Equipment on operating leases	1,546	1,468
Accumulated depreciation	(1,092)	(993)
Equipment on Operating Leases, Net	454	475
Property Subject to or Available for Operating Lease [Line Items]
Operating Leases, Income Statement, Contingent Revenue	119	$ 132	$ 139
Operating Leases, Future Minimum Payments Receivable [Abstract]
2018	313
2019	208
2020	131
2021	66
2022	24
Thereafter	$ 2
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, 2017	Dec. 31, 2016
Property, Plant, Equipment and Software [Line Items]
Land, buildings and equipment, gross	$ 3,072	$ 3,135
Accumulated depreciation	(2,443)	(2,475)
Land, Buildings and Equipment, Net	629	660
Land [Member]
Property, Plant, Equipment and Software [Line Items]
Land, buildings and equipment, gross	22	20
Building and building equipment [Member]
Property, Plant, Equipment and Software [Line Items]
Land, buildings and equipment, gross	909	892
Leasehold Improvements [Member]
Property, Plant, Equipment and Software [Line Items]
Land, buildings and equipment, gross	192	238
Plant machinery [Member]
Property, Plant, Equipment and Software [Line Items]
Land, buildings and equipment, gross	1,214	1,225
Office furniture and equipment [Member]
Property, Plant, Equipment and Software [Line Items]
Land, buildings and equipment, gross	651	657
Other [Member]
Property, Plant, Equipment and Software [Line Items]
Land, buildings and equipment, gross	54	70
Construction in progress [Member]
Property, Plant, Equipment and Software [Line Items]
Land, buildings and equipment, gross	$ 30	$ 33
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, 2017	Dec. 31, 2016	Dec. 31, 2015
Land, Buildings, Equipment and Software, Net [Abstract]
Depreciation expense	$ 136	$ 148	$ 151
Operating lease expense	161	157	$ 164
Capital Leased Assets, Gross	35	$ 31
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2018	127
2019	100
2020	77
2021	55
2022	42
Thereafter	$ 48

Land, Buildings, Equipment and Software, Net - Internal Use Software (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Land, Buildings, Equipment and Software [Abstract]
Additions to internal use software	$ 36	$ 45	$ 64
Internal use software, capitalized costs, net	$ 209	$ 218
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, 2017

Dec. 31, 2016

Dec. 31, 2015

Schedule of Equity Method Investments [Line Items]

Investments in Affiliates, at Equity

$ 1,404

$ 1,294

$ 1,283

Total Equity in Net Income of Unconsolidated Affiliates

^[1]

115

127

109

Fuji Xerox

Schedule of Equity Method Investments [Line Items]

Investments in Affiliates, at Equity

1,366

1,219

Total Equity in Net Income of Unconsolidated Affiliates

$ 102

114

Equity Method Investment, Ownership Percentage

25.00%

Implied Investment in Affiliates - Fuji Xerox

$ 1,455

Other [Member]

Schedule of Equity Method Investments [Line Items]

Investments in Affiliates, at Equity

Total Equity in Net Income of Unconsolidated Affiliates

$ 13

$ 18

[1]	Equity in net income of unconsolidated affiliates has been revised for all applicable prior periods presented throughout this document. Refer to Note 2 - Correction of Fuji Xerox Misstatement in Prior Period Financial Statements for additional information on this revision.

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, 2017	Dec. 31, 2016	Dec. 31, 2015
Summary of Operations
Revenues	$ 9,638	$ 10,149	$ 9,832
Costs and expenses	9,072	9,460	9,225
Income before income taxes	566	689	607
Income tax expense	144	206	218
Net Income	422	483	389
Less: Net income - noncontrolling interests	5	8	7
Net Income - Fuji Xerox	417	475	382
Assets:
Current assets	4,315	4,313	4,350
Long-term assets	4,488	4,516	4,777
Total Assets	8,803	8,829	9,127
Liabilities and Equity:
Short-term debt	428	681	780
Other current liabilities	2,079	2,001	2,011
Long-term debt	76	283	584
Other long-term liabilities	369	587	521
Noncontrolling interests	33	31	31
Fuji Xerox shareholders' equity	5,818	5,246	5,200
Total Liabilities and Equity	$ 8,803	$ 8,829	$ 9,127

Investment in Affiliates, at Equity - Investment in Affiliate Exchange Rates (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Equity Method Investments and Joint Ventures [Abstract]
Summary of operations, weighted average rate	112.14	108.76	120.97
Balance sheet, year-end rate	112.87	116.53	120.49

Investment in Affiliates, at Equity - Other Transactions with Fuji Xerox (Details) - Fuji Xerox [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Schedule of Equity Method Investments [Line Items]
Dividends received from Fuji Xerox	$ 46	$ 47	$ 51
Royalty revenue earned	103	110	105
Inventory purchases from Fuji Xerox	1,585	1,641	1,728
Inventory sales to Fuji Xerox	58	80	108
R&D payments received from Fuji Xerox	1	1	1
R&D payments paid to Fuji Xerox	14	13	$ 7
Net amounts due to Fuji Xerox	$ 331	$ 273

Goodwill and Intangible Assets, Net - Goodwill (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Beginning Balance, Goodwill

$ 3,787

$ 3,951

Foreign currency translation

105

(183)

Goodwill, Written off Related to Sale of Business Unit

^[1]

(6)

Ending Balance, Goodwill

3,930

3,787

Imagetek Office Systems [Member]

Goodwill acquired during period

Other Immaterial Acquisitions [Member]

Goodwill acquired during period

$ 9

MT Business [Member]

Goodwill acquired during period

$ 33

[1]	Relates to the sale of Xerox Research Centre Europe in Grenoble, France to Naver. Refer to Note 5 - Divestitures for additional information regarding this divestiture.

Goodwill and Intangible Assets, Net - Intangible Assets by Major Class (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 719	$ 896
Accumulated Amortization	451	606
Net Amount	268	290
Amortization of intangible assets	53	58	$ 60
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2018	51
2019	50
2020	38
2021	19
2022	$ 19
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization	10 years
Gross Carrying Amount	$ 319	508
Accumulated Amortization	236	410
Net Amount	$ 83	98
Distribution network
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization	25 years
Gross Carrying Amount	$ 123	123
Accumulated Amortization	89	84
Net Amount	$ 34	39
Trademarks
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization	20 years
Gross Carrying Amount	$ 261	250
Accumulated Amortization	120	107
Net Amount	$ 141	143
Technology and non-compete
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization	14 years
Gross Carrying Amount	$ 16	15
Accumulated Amortization	6	5
Net Amount	$ 10	$ 10

Restructuring and Asset Impairment Charges (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Restructuring Cost and Reserve [Line Items]

Three-year strategic cost transformation program

3 years

$ 127

$ 19

$ 84

236

252

(35)

(22)

(17)

^[1]

201

230

(219)

(122)

(92)

Reconciliation to the Condensed Consolidated Statements of Cash Flows [Abstract]

109

127

Asset impairments

Effects of foreign currency and other non-cash items

(12)

Restructuring Cash Payments

(224)

(118)

(79)

Severance and Related Costs

104

225

224

(29)

(16)

^[1]

196

208

(192)

(122)

(84)

Lease Cancellation and Other Costs

108

104

(6)

(1)

^[1]

(2)

(20)

(5)

(1)

Asset Impairments

^[2]

^[2]

^[2]

(5)

^[1],[2]

(5)

^[2]

(7)

^[2]

$ 0

[1]	Represents net amount recognized within the Consolidated Statements of Income (Loss) 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) £ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($)	Dec. 31, 2017 GBP (£)	Dec. 31, 2016 USD ($)
Other Current Assets
Due from Conduent			$ 127
Total Other Current Assets	$ 236		619
Other Current Liabilities
Total Other Current Liabilities	907		1,095
Other Long-term Assets
Internal use software, net	209		218
Total Other Long-term Assets	682		683
Other Long-term Liabilities
Total Other Long-term Liabilities	206		193
Tax and labor litigation deposits in Brazil	72		85
Escrow and cash collections related to receivable sales	0		62
Other restricted cash	3		32
Total Restricted Cash	75		179
Cash receipt from performance-based instrument	127
Discontinued operations TRG	13
Cash adjustment			161
Taxes payable			(32)
Other			(2)
Disposal Group, Including Discontinued Operation, Cash			225
Pension Plan [Member]
Other Long-term Liabilities
Defined Benefit Plan, Plan Assets, Contributions by Employer	836
Pension Plan [Member] \| Foreign Plan [Member]
Other Long-term Liabilities
Defined Benefit Plan, Plan Assets, Contributions by Employer	161		154
Pension Plan [Member] \| Qualified Plan [Member] \| Voluntary Contributions [Member] \| Foreign Plan [Member]
Other Long-term Liabilities
Defined Benefit Plan, Plan Assets, Contributions by Employer	105
Pension Plan [Member] \| Qualified Plan [Member] \| Voluntary Contributions [Member] \| Foreign Plan [Member] \| United Kingdom, Pounds
Other Long-term Liabilities
Defined Benefit Plan, Plan Assets, Contributions by Employer \| £		£ 80
Other Current Assets
Other Current Assets
Income taxes receivable	43		50
Royalties, license fees and software maintenance	18		21
Restricted cash	1		92
Prepaid expenses	43		45
Derivative instruments	2		88
Deferred purchase price from sales of accounts receivables	0		48
Beneficial interests - sales of finance receivables	0		8
Advances and deposits	27		15
Other	102		125
Due from Conduent	0		127
Other Current Liabilities
Other Current Liabilities
Income taxes payable	7		45
Other taxes payable	91		78
Interest payable	43		55
Restructuring reserves	106		121
Derivative instruments	25		39
Product warranties	6		7
Dividends payable	73		91
Distributor and reseller rebates/commissions	175		120
Servicer liabilities	0		62
Unearned income and other revenue deferrals	170		187
Other	211		290
Other Long-term Assets
Other Long-term Assets
Income taxes receivable	10		14
Prepaid pension costs	193		17
Net investment in TRG	0		126
Internal use software, net	209		218
Product software, net	0		8
Restricted cash	74		87
Debt issuance costs, net	5		3
Customer contract costs, net	10		7
Beneficial interest - sales of finance receivables	0		16
Deferred compensation plan investments	18		15
Other	162		168
Other Long-term Assets \| Designated as Hedging Instrument [Member] \| Interest Rate Swap [Member]
Other Long-term Assets
Derivative instruments	1		4
Other Long-term Liabilities
Other Long-term Liabilities
Deferred taxes	42		42
Income taxes payable	21		16
Environmental reserves	9		9
Restructuring reserves	3		6
Other	$ 131		$ 120

Debt - Short-term Debt (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Debt Disclosure [Abstract]
Notes Payable	$ 6	$ 4
Current maturities of long-term debt	276	1,007
Total Short-term Debt	$ 282	$ 1,011

Debt - Long-term Debt (Details) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2017

Sep. 30, 2017

Dec. 31, 2017

Dec. 31, 2016

Oct. 12, 2017

Sep. 11, 2017

Debt Issuance Cost, Gross, Noncurrent

$ 5,573

$ 6,345

Unamortized discount

(35)

(43)

(32)

(21)

Terminated swaps

^[1]

Current swaps

^[1]

Less: current maturities

(276)

(1,007)

Total Long-term Debt

5,235

5,305

Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months

^[2]

274

Long-term Debt, Maturities, Repayments of Principal in Year Two

968

Long-term Debt, Maturities, Repayments of Principal in Year Three

1,059

Long-term Debt, Maturities, Repayments of Principal in Year Four

1,069

Long-term Debt, Maturities, Repayments of Principal in Year Five

301

Long-term Debt, Maturities, Repayments of Principal after Year Five

1,902

Long-term Debt Maturities, Subsequent Year by Quarter, First

Long-term Debt Maturities, Subsequent Year by Quarter, Second

268

Long-term Debt Maturities, Subsequent Year by Quarter, Third

Long-term Debt Maturities, Subsequent Year by Quarter, Fourth

$ 2

Senior Notes due 2017 2.95%

^[3]

$ 0

500

Senior Notes due 2017 6.75%

^[3]

$ 0

500

Notes due 2018

^[4]

0.57%

$ 1

0.57%

Senior Notes due 2018

^[4]

6.09%

$ 265

1,000

Senior Notes due 2019 2.75%

6.35%

^[4]

2.58%

$ 406

500

Senior Notes due 2019 5.63%

2.75%

^[4]

5.48%

$ 554

650

Senior Notes due 2020 2.80%

5.63%

^[4]

2.50%

$ 313

400

Senior Notes due 2020 3.50%

2.80%

^[4]

3.47%

$ 362

400

Senior Notes due 2020 2.75%

3.50%

^[4]

2.67%

$ 375

400

2.75%

Senior Notes due 2021

^[4]

5.39%

$ 1,062

1,062

4.50%

Senior Notes due 2022

^[4]

4.07%

$ 300

4.07%

Senior Notes Due 2023

^[4]

3.64%

$ 1,000

3.63%

Senior Notes due 2024

^[4]

3.84%

$ 300

300

3.80%

Senior Notes due 2035

^[4]

4.84%

$ 250

250

4.80%

Senior Notes due 2039

^[4]

6.78%

$ 350

350

6.75%

Subtotal - Notes

Capital Lease Obligations [Member]

$ 5,538

6,313

^[4]

4.11%

$ 35

^[4]

$ 0

Subtotal - Other Debt

Senior Notes due 2023 3.625% [Member]

Senior Notes

$ 1,000

Debt instrument percentage of par

3.625%

99.92%

Proceeds from Issuance of Debt

$ 992

Debt Issuance Costs, Net

$ 8

Senior Notes due 2018 6.35% [Member]

Remaining balance of originally issued Senior Notes

6.35%

Debt redeemed

$ 475

$ 740

Loss on early redemption of debt

$ 7

Pension Plan [Member]

Defined Benefit Plan, Plan Assets, Contributions by Employer

836

Domestic Plan [Member] | Pension Plan [Member]

Defined Benefit Plan, Plan Assets, Contributions by Employer

$ 675

$ 24

Domestic Plan [Member] | Pension Plan [Member] | Voluntary Contributions [Member] | Additional [Member]

Defined Benefit Plan, Plan Assets, Contributions by Employer

$ 500

[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 2018 are $2, $268, $2 and $2 for the first, second, third and fourth quarters, respectively.
[3]	Senior Notes maturing in 2017 were paid in part from funds received in the distribution from Conduent as part of the Separation. Refer to Note 5 - Divestitures for additional information.
[4]	Represents weighted average effective interest rate which includes the effect of discounts and premiums on issued debt.

Debt - Credit Facility (Details) - USD ($)	3 Months Ended	12 Months Ended
Debt - Credit Facility (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
Line of Credit Facility [Line Items]
Line of Credit Facility, Fair Value of Amount Outstanding		$ 0	$ 0
Letters of Credit Outstanding, Amount		0	0
Commercial Paper and Credit Facility Maximum Borrowing Capacity		1,800,000,000.0
Commercial Paper		$ 0	$ 0
Commercial Paper [Member]
Line of Credit Facility [Line Items]
Short-term Debt, Commercial Paper Maximum Maturity Days		390 days
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Accordion Feature	$ 750,000,000
Line of Credit Facility, Annual Fee Percentage		0.20%
Revolving Credit Facility [Member] \| Minimum [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Interest Rate, Base Rate	0.00%
Line of Credit Facility, Interest Rate, LIBOR Plus All-in Spread Rate	1.00%
All-in Interest Rate Spread Based on Credit Rating		0.175%
Line of Credit Facility, Annual Fee Percentage	0.125%
Line of Credit Facility, Covenant Terms	3.00x
Revolving Credit Facility [Member] \| Maximum [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Interest Rate, Base Rate	0.70%
Line of Credit Facility, Interest Rate, LIBOR Plus All-in Spread Rate	1.70%
All-in Interest Rate Spread Based on Credit Rating		1.175%
Line of Credit Facility, Annual Fee Percentage	0.30%
Line of Credit Facility, Covenant Terms	4.25x
Revolving Credit Facility [Member] \| Previous Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Former Borrowing Capacity	$ 2,000,000,000
Line of Credit Facility, Expiration Date	Mar. 31, 2019
Letter of credit, credit facility sub-facility, maximum borrowing amount	$ 300,000,000
Debt Issuance Costs, Gross	2,000,000
Revolving Credit Facility [Member] \| Amended and Restated Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Current Borrowing Capacity	$ 1,800,000,000
Line of Credit Facility, Expiration Date	Aug. 31, 2022
Letter of credit, credit facility sub-facility, maximum borrowing amount	$ 250,000,000
Debt Issuance Costs, Gross	$ 5,000,000
Commercial Paper [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity		$ 2,000,000,000.0

Debt - Exchange (Details) $ in Millions	3 Months Ended
Debt - Exchange (Details) $ in Millions	Mar. 31, 2017 USD ($)
Debt Conversion [Line Items]
Principal Amount Exchanged	$ 600
4.07% Senior Notes Due March 2022	300
Cash Consideration	322
Debt Exchange, Conversion Premium	$ 22
Debt Exchange, New Senior Notes Coupon	4.07%
Loss on Extinguishment of Debt Exchanged for Cash	$ 9
Debt Exchange, Exchange Premium and Other Carrying Value Adjustments on Old Notes	9
Debt Issuance Costs Incurred During Noncash or Partial Noncash Transaction	4
4.07% Senior Notes due March 17, 2022 [Member]
Debt Conversion [Line Items]
4.07% Senior Notes Due March 2022	$ 300
Senior Notes due May 2018 [Member]
Debt Conversion [Line Items]
Coupon	6.35%
Principal Amount Exchanged	$ 260
4.07% Senior Notes Due March 2022	130
Cash Consideration	$ 143
Senior Notes due March 2019 [Member]
Debt Conversion [Line Items]
Coupon	2.75%
Principal Amount Exchanged	$ 94
4.07% Senior Notes Due March 2022	47
Cash Consideration	$ 48
Senior Notes due December 2019 [Member]
Debt Conversion [Line Items]
Coupon	5.625%
Principal Amount Exchanged	$ 96
4.07% Senior Notes Due March 2022	48
Cash Consideration	$ 56
Senior Notes due May 2020 [Member]
Debt Conversion [Line Items]
Coupon	2.80%
Principal Amount Exchanged	$ 87
4.07% Senior Notes Due March 2022	44
Cash Consideration	$ 43
Senior Notes due August 2020 [Member]
Debt Conversion [Line Items]
Coupon	3.50%
Principal Amount Exchanged	$ 38
4.07% Senior Notes Due March 2022	19
Cash Consideration	$ 20
Senior Notes due September 2020 [Member]
Debt Conversion [Line Items]
Coupon	2.75%
Principal Amount Exchanged	$ 25
4.07% Senior Notes Due March 2022	12
Cash Consideration	$ 12

Debt - Interest Income/Expense (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Schedule of interest paid on debt from continuing and discontinued operations [Line Items]

Interest Paid

$ 268

$ 352

$ 365

Interest Paid, Discontinued Operations

Interest Expense

^[1]

252

309

346

Interest Income

^[2]

302

330

352

Continuing Operations [Member]

Schedule of interest paid on debt from continuing and discontinued operations [Line Items]

Interest Paid

$ 268

$ 332

$ 356

[1]	Includes Equipment financing interest expense, as well as non-financing interest expense included in Other expenses, net in the Consolidated Statements of Income (Loss).
[2]	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, 2017	Dec. 31, 2016	Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Amortization of fair value adjustments for terminated swaps	$ 13	$ 19	$ 22
Expected net decrease to interest expense in future years through 2022	$ 4

Financial Instruments - Fair Value Hedges (Details) - Senior Notes due 2021 - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Derivative [Line Items]
Derivative Liability, Notional Amount	$ 300	$ 300
Derivative Liability, Fair Value, Gross Asset	$ 1	$ 4
Debt, Weighted Average Interest Rate	2.80%
Debt Instrument, Interest Rate, Effective Percentage	4.50%

Financial Instruments - Foreign Exchange Risk Management (Details) - USD ($)

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

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 to Six Months

8.00%

Average Maturity of Foreign Exchange Hedging Contracts - within Six to Twelve Months

7.00%

Summary of Foreign Exchange Hedging Positions [Abstract]

Cash Flow Hedging [Member]

$ 1,788,000,000

Foreign Exchange Contracts [Line Items]

Derivative, Gain (Loss) on Derivative, Net

$ 0

U.S. Dollar/Euro

Summary of Foreign Exchange Hedging Positions [Abstract]

Summary of Foreign Exchange Hedging Positions [Abstract]

406,000,000

Japanese Yen/U.S. Dollar

Summary of Foreign Exchange Hedging Positions [Abstract]

356,000,000

Japanese Yen/Euro

Summary of Foreign Exchange Hedging Positions [Abstract]

308,000,000

Euro/U.K. Pound Sterling

Summary of Foreign Exchange Hedging Positions [Abstract]

263,000,000

Canadian Dollar/Euro

Summary of Foreign Exchange Hedging Positions [Abstract]

100,000,000

Euro/Canadian Dollar

U.S. Dollar/Canadian Dollar

94,000,000

Summary of Foreign Exchange Hedging Positions [Abstract]

Summary of Foreign Exchange Hedging Positions [Abstract]

58,000,000

Euro/Japanese Yen

Summary of Foreign Exchange Hedging Positions [Abstract]

38,000,000

Swiss Franc/Euro

U.S. Dollar/Russian Ruble

22,000,000

Summary of Foreign Exchange Hedging Positions [Abstract]

Summary of Foreign Exchange Hedging Positions [Abstract]

19,000,000

Euro/Danish Krone

Summary of Foreign Exchange Hedging Positions [Abstract]

18,000,000

Mexican Peso/U.S. Dollar

Summary of Foreign Exchange Hedging Positions [Abstract]

13,000,000

All Other

Foreign exchange contract [Member]

93,000,000

Summary of Foreign Exchange Hedging Positions [Abstract]

Foreign exchange contract [Member] | U.S. Dollar/Euro

^[1]

(23,000,000)

Summary of Foreign Exchange Hedging Positions [Abstract]

Foreign exchange contract [Member] | Japanese Yen/U.S. Dollar

^[1]

(4,000,000)

Summary of Foreign Exchange Hedging Positions [Abstract]

Foreign exchange contract [Member] | Japanese Yen/Euro

^[1]

(5,000,000)

Summary of Foreign Exchange Hedging Positions [Abstract]

Foreign exchange contract [Member] | Euro/U.K. Pound Sterling

^[1]

(9,000,000)

Summary of Foreign Exchange Hedging Positions [Abstract]

Foreign exchange contract [Member] | Canadian Dollar/Euro

^[1]

1,000,000

Summary of Foreign Exchange Hedging Positions [Abstract]

Foreign exchange contract [Member] | Euro/Canadian Dollar

^[1]

(4,000,000)

Summary of Foreign Exchange Hedging Positions [Abstract]

Foreign exchange contract [Member] | U.S. Dollar/Canadian Dollar

^[1]

(2,000,000)

Summary of Foreign Exchange Hedging Positions [Abstract]

Foreign exchange contract [Member] | Euro/Japanese Yen

^[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.S. Dollar/Russian Ruble

^[1]

Summary of Foreign Exchange Hedging Positions [Abstract]

Foreign exchange contract [Member] | Euro/Danish Krone

^[1]

Summary of Foreign Exchange Hedging Positions [Abstract]

Foreign exchange contract [Member] | Mexican Peso/U.S. Dollar

^[1]

Summary of Foreign Exchange Hedging Positions [Abstract]

Foreign exchange contract [Member] | All Other

^[1]

Summary of Foreign Exchange Hedging Positions [Abstract]

Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]

^[1]

$ 0

[1]	Represents the net receivable (payable) amount included in the Consolidated Balance Sheet at December 31, 2017.

Financial Instruments - Summary of Derivative Instruments Fair Value (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Net Derivative (Liability) Asset	$ (22,000,000)	$ 53,000,000
Other Assets [Member]
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative instruments - assets	3,000,000	92,000,000
Other Liabilities [Member]
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative instruments - liabilities	(25,000,000)	(39,000,000)
Designated as Hedging Instrument [Member] \| Other Liabilities [Member]
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Net Derivative (Liability) Asset	(13,000,000)	(16,000,000)
Cash Flow Hedging [Member]
Fair Values Derivatives, Balance Sheet Location, by Derivative Contract Type [Line Items]
Derivative, Gain (Loss) on Derivative, Net	0	0
Foreign exchange contracts - forwards [Member] \| Designated as Hedging Instrument [Member]
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Net Derivative (Liability) Asset	(14,000,000)	(20,000,000)
Foreign exchange contracts - forwards [Member] \| Designated as Hedging Instrument [Member] \| Other current assets [Member]
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative instruments - assets	1,000,000	6,000,000
Foreign exchange contracts - forwards [Member] \| Designated as Hedging Instrument [Member] \| Other Current Liabilities
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative instruments - liabilities	(15,000,000)	(26,000,000)
Foreign exchange contracts - forwards [Member] \| Derivatives Not Designated as Hedging Instruments [Member]
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Net Derivative (Liability) Asset	(9,000,000)	69,000,000
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 - assets	1,000,000	82,000,000
Foreign exchange contracts - forwards [Member] \| Derivatives Not Designated as Hedging Instruments [Member] \| Other Current Liabilities
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative instruments - liabilities	(10,000,000)	(13,000,000)
Interest Rate Swap [Member] \| Designated as Hedging Instrument [Member] \| Other Long-term Assets
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative instruments - assets	1,000,000	4,000,000
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	0
Foreign Currency Gain (Loss) [Member] \| Foreign exchange contracts - forwards [Member] \| Derivatives Not Designated as Hedging Instruments [Member]
Fair Values Derivatives, Balance Sheet Location, by Derivative Contract Type [Line Items]
Derivative, Gain (Loss) on Derivative, Net	$ 44,000,000	$ (172,000,000)	$ (17,000,000)

Financial Instruments - Summary of Derivative Instruments Gain (Losses) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Derivative Instruments, Gain (Loss) [Line Items]
Accumulated Other Comprehensive Loss, Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax	$ 12,000,000	$ 13,000,000	$ (1,000,000)
Currency (losses) gains, net	(4,000,000)	(13,000,000)	(2,000,000)
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	(44,000,000)	172,000,000	17,000,000
Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Gain (Loss) Recognized in Income	0	0
Cash Flow Hedging [Member] \| Other expense - Currency gains (losses), net [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Gain (Loss) Recognized in Income	0	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)	(3,000,000)	2,000,000
Hedged Item Gain (Loss) Recognized in Income	3,000,000	3,000,000	(2,000,000)
Cash Flow Hedging [Member] \| Foreign exchange contracts - forwards [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Gain (Loss) Recognized in OCI	(28,000,000)	20,000,000	17,000,000
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	$ (35,000,000)	$ 42,000,000	$ (23,000,000)

Fair Value of Financial Assets and Liabilities - Recurring (Details) - USD ($)
$ in Millions

Dec. 31, 2017

Dec. 31, 2016

Assets:

Current swaps

^[1]

$ 1

$ 4

Assets:

Current swaps

Deferred compensation investments in mutual funds

Total

107

Liabilities:

Foreign exchange contracts - forwards

Deferred compensation plan liabilities

Total

Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Foreign exchange contracts - forwards [Member]

Assets:

Foreign exchange contracts - forwards

$ 2

$ 88

[1]

Fair Value of Financial Assets and Liabilities - Nonrecurring (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Carrying Amount [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	$ 1,293	$ 2,223
Accounts receivable, net	1,357	961
Short-term debt	282	1,011
Long-term debt	5,235	5,305
Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	1,293	2,223
Accounts receivable, net	1,357	961
Short-term debt	283	1,015
Long-term debt	$ 5,373	$ 5,438

Employee Benefit Plans (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Amounts Recognized in the Consolidated Balance Sheets:

Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]

$ (1,595)

$ (2,240)

Pension Plan [Member]

10,883

8,158

836

9,532

8,158

Other Postretirement Benefits Plan [Member]

(1,351)

Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]

Benefit obligation - beginning

761

855

$ 7

^[1]

Actuarial loss (gain)

(16)

(75)

Plan Amendments/Curtailments

(66)

(62)

(1)

723

761

855

Actual return on plan assets

(66)

(62)

Amounts Recognized in the Consolidated Balance Sheets:

^[2]

(723)

(761)

Accrued compensation and benefit costs

(61)

(63)

Post-retirement medical benefits

(662)

(698)

Net Amounts Recognized

(723)

(761)

Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract]

Net actuarial loss

Domestic Plan [Member] | Pension Plan [Member]

(26)

(29)

Total Pre-tax Loss

(4)

Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]

Benefit obligation - beginning

4,161

4,126

^[1]

226

184

Actuarial loss (gain)

392

114

Plan Amendments/Curtailments

(606)

(275)

4,180

4,161

4,126

Actual return on plan assets

2,774

2,806

381

220

675

(606)

(275)

(1)

3,224

2,774

2,806

Amounts Recognized in the Consolidated Balance Sheets:

^[2]

(956)

(1,387)

Accrued compensation and benefit costs

(26)

(24)

Post-retirement medical benefits

(930)

(1,363)

Net Amounts Recognized

(956)

(1,387)

Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract]

Net actuarial loss

1,178

1,094

(7)

(9)

Total Pre-tax Loss

1,171

1,085

Foreign Plan [Member] | Pension Plan [Member]

4,179

4,161

Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]

Benefit obligation - beginning

6,160

6,308

^[1]

158

195

203

Actuarial loss (gain)

(29)

636

Plan Amendments/Curtailments

635

(774)

(4)

(246)

(234)

(4)

(6)

6,703

6,160

6,308

Actual return on plan assets

5,384

5,353

453

804

161

154

557

(694)

(246)

(234)

(5)

(3)

6,308

5,384

$ 5,353

Amounts Recognized in the Consolidated Balance Sheets:

^[2]

(395)

(776)

Accrued compensation and benefit costs

193

(25)

(22)

Post-retirement medical benefits

(563)

(771)

Net Amounts Recognized

(395)

(776)

Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract]

Net actuarial loss

1,562

1,741

(28)

Total Pre-tax Loss

1,534

1,713

$ 6,483

$ 5,931

[1]	Interest cost for Pension Benefits includes interest expense on non-TRA obligations of $257, $296 and $311 and interest expense (income) directly allocated to TRA participant accounts of $127, $83 and $(25) for the years ended December 31, 2017, 2016 and 2015, respectively.
[2]	Includes under-funded and unfunded plans.

Employee Benefit Plans - Accumulated Benefit Obligation in Excess of Plan Assets (Details) - Pension Plan [Member] - USD ($)
$ in Millions

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

$ 5,490

$ 9,141

5,463

8,965

3,947

6,968

9,532

8,158

10,883

(1,351)

Domestic Plan [Member]

4,180

4,161

4,179

4,161

3,224

2,774

3,224

2,774

$ 2,806

4,180

4,161

4,126

^[1]

(956)

(1,387)

Foreign Plan [Member]

1,310

4,980

1,284

4,804

723

4,194

6,308

5,384

5,353

6,703

6,160

$ 6,308

Foreign Plan [Member] | UNITED KINGDOM

^[1]

(395)

(776)

4,098

3,948

Foreign Plan [Member] | Canada

150

749

777

Foreign Plan [Member] | Pension Plans All Other Countries [Member]

(28)

1,461

1,978

Underfunded Plan [Member] | Domestic Plan [Member]

(517)

3,830

3,820

3,829

3,820

Underfunded Plan [Member] | Foreign Plan [Member]

3,224

2,774

814

4,535

799

4,368

Unfunded Plan [Member] | Domestic Plan [Member]

723

4,194

350

341

350

341

350

Unfunded Plan [Member] | Foreign Plan [Member]

(350)

496

445

485

436

Funded Plan [Member] | Domestic Plan [Member]

$ 0

3,224

3,830

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

$ (606)

[1]	Includes under-funded and unfunded 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, 2017

Dec. 31, 2016

Dec. 31, 2015

$ 194

$ 127

$ 141

(118)

(73)

^[1]

(236)

(160)

(186)

^[1]

(10)

(38)

Interest Expense on Non-TRA Obligations

(169)

(141)

(212)

257

296

311

Interest Expense Allocated to TRA Participant Accounts

127

(25)

Expected Investment Income on Non-TRA Assets

321

356

388

Actual Investment Income on TRA Assets

127

(25)

Pension Plan [Member]

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Pension Plan [Member] | Benefit plans net actuarial loss [Member]

194

127

141

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

(83)

Pension Plan [Member] | Benefit plans prior service credits [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

Other Postretirement Benefits Plan [Member]

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Expected return on plan assets

^[2]

^[3]

Recognized net actuarial loss

Amortization of prior service credit

(4)

(5)

(18)

Recognized settlement loss

Recognized curtailment gain

$ 22

(22)

Net Periodic Benefit Cost

(16)

(75)

(4)

(32)

(1)

(2)

(1)

Curtailment gain

Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income

(13)

(72)

(37)

Other Postretirement Benefits Plan [Member] | Benefit plans net actuarial loss [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

Other Postretirement Benefits Plan [Member] | Benefit plans prior service credits [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

Domestic Plan [Member] | Pension Plan [Member]

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Expected return on plan assets

^[2]

226

184

^[3]

(227)

(190)

(79)

Recognized net actuarial loss

Amortization of prior service credit

(2)

Recognized settlement loss

133

Recognized curtailment gain

Defined contribution plans

153

115

Net Periodic Benefit Cost

178

117

148

238

(74)

(154)

(92)

(112)

Curtailment gain

Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income

(6)

(184)

264

111

(36)

Foreign Plan [Member] | Pension Plan [Member]

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Expected return on plan assets

^[2]

158

195

203

^[3]

(221)

(249)

(284)

Recognized net actuarial loss

Amortization of prior service credit

(4)

(3)

Recognized settlement loss

Recognized curtailment gain

(2)

Defined contribution plans

Net Periodic Benefit Cost

(273)

204

(1)

(16)

(81)

(66)

(71)

(4)

Curtailment gain

Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income

(351)

113

$ (281)

$ 84

$ 172

[1]	Reclassified to Total Net Periodic Benefit Cost - refer to Note 17 - Employee Benefit Plans for additional information.
[2]	Interest cost for Pension Benefits includes interest expense on non-TRA obligations of $257, $296 and $311 and interest expense (income) directly allocated to TRA participant accounts of $127, $83 and $(25) for the years ended December 31, 2017, 2016 and 2015, respectively.
[3]	Expected return on plan assets includes expected investment income on non-TRA assets of $321, $356 and $388 and actual investment income (loss) on TRA assets of $127, $83 and $(25) for the years ended December 31, 2017, 2016 and 2015, respectively.

Employee Benefit Plans - Defined Benefit Plans Measured Using Significant Unobservable Inputs Level 3 (Details) - Pension Plan [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value of plan assets -beginning	$ 8,158
Fair Value of Plan Assets - ending	9,532	$ 8,158
Domestic Plan [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value of plan assets -beginning	2,774	2,806
Fair Value of Plan Assets - ending	3,224	2,774
Domestic Plan [Member] \| Fair Value, Inputs, Level 3 [Member] \| Real estate [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value of plan assets -beginning	12	17
Purchases	0	0
Transfers out of Level 3	(7)
Sales	(5)	(3)
Realized gains	(9)	0
Unrealized gains (losses)	9	(2)
Currency translation	0	0
Fair Value of Plan Assets - ending	0	12
Foreign Plan [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value of plan assets -beginning	5,384	5,353
Fair Value of Plan Assets - ending	6,308	5,384
Foreign Plan [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value of plan assets -beginning	231	269
Purchases	1	5
Transfers out of Level 3	0
Sales	(2)	(26)
Realized gains	(1)	7
Unrealized gains (losses)	(24)	(12)
Currency translation	39	(12)
Fair Value of Plan Assets - ending	244	231
Foreign Plan [Member] \| Fair Value, Inputs, Level 3 [Member] \| Real estate [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value of plan assets -beginning	121	145
Purchases	1	1
Transfers out of Level 3	0
Sales	0	(13)
Realized gains	(1)	6
Unrealized gains (losses)	7	(5)
Currency translation	9	(13)
Fair Value of Plan Assets - ending	137	121
Foreign Plan [Member] \| Fair Value, Inputs, Level 3 [Member] \| Private equity funds [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value of plan assets -beginning	6	4
Purchases	0	2
Transfers out of Level 3	0
Sales	0	(1)
Realized gains	0	0
Unrealized gains (losses)	(16)	(4)
Currency translation	17	5
Fair Value of Plan Assets - ending	7	6
Foreign 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]
Fair value of plan assets -beginning	104	120
Purchases	0	2
Transfers out of Level 3	0
Sales	(2)	(12)
Realized gains	0	1
Unrealized gains (losses)	(15)	(3)
Currency translation	13	(4)
Fair Value of Plan Assets - ending	$ 100	$ 104

Employee Benefit Plans - Investment Strategy (Details) - Pension Plan [Member]	Dec. 31, 2017	Dec. 31, 2016
Domestic Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Pension Plan Assets, Investment Strategy	100.00%	100.00%
Foreign Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Pension Plan Assets, Investment Strategy	100.00%	100.00%
Equity Securities [Member] \| Domestic Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Pension Plan Assets, Investment Strategy	12.00%	30.00%
Equity Securities [Member] \| Foreign Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Pension Plan Assets, Investment Strategy	24.00%	28.00%
Fixed Income Securities [Member] \| Domestic Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Pension Plan Assets, Investment Strategy	73.00%	48.00%
Fixed Income Securities [Member] \| Foreign Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Pension Plan Assets, Investment Strategy	45.00%	45.00%
Real estate [Member] \| Domestic Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Pension Plan Assets, Investment Strategy	3.00%	6.00%
Real estate [Member] \| Foreign Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Pension Plan Assets, Investment Strategy	5.00%	5.00%
Private Equity Or Venture Capital [Member] \| Domestic Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Pension Plan Assets, Investment Strategy	6.00%	8.00%
Private Equity Or Venture Capital [Member] \| Foreign Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Pension Plan Assets, Investment Strategy	12.00%	9.00%
Other Assets [Member] \| Domestic Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Pension Plan Assets, Investment Strategy	6.00%	8.00%
Other Assets [Member] \| Foreign Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Pension Plan Assets, Investment Strategy	14.00%	13.00%

Employee Benefit Plans - Contributions (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Contribution Plan, Employer Discretionary Contribution Amount			$ 54	$ 61	$ 66
Pension Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Plan Assets, Contributions by Employer			836
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year			192
2018			769
2019			547
2020			564
2021			553
2022			581
Years 2023-2027			2,892
Other Postretirement Benefits Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Plan Assets, Contributions by Employer			64	$ 61
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year			62
2018			62
2019			60
2020			58
2021			57
2022			55
Years 2023-2027			$ 239
Discount rate assumptions used to determine benefit obligations			3.50%	3.90%	4.10%
Discount rate assumptions used to determine net periodic benefit costs			3.90%	4.10%	3.80%
Defined Benefit Plan, Health Care Cost Trend Rate Assumed, Next Fiscal Year			6.80%	7.20%
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate			4.80%	4.80%
Year that the rate reaches the ultimate trend rate			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)
Other Postretirement Benefits Plan [Member] \| Forecasted [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Discount rate assumptions used to determine net periodic benefit costs		3.50%
Domestic Plan [Member] \| Pension Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Plan Assets, Contributions by Employer			675	$ 24
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year			76
2018			528
2019			301
2020			312
2021			293
2022			315
Years 2023-2027			$ 1,456
Discount rate assumptions used to determine benefit obligations			3.60%	4.00%	4.30%
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			4.00%	4.30%	3.90%
Expected return on plan assets assumptions used to determine net periodic benefit cost			7.00%	7.50%	7.50%
Rate of compensation increase assumptions used to determine net periodic benefit cost			0.20%	0.20%	0.20%
Domestic Plan [Member] \| Pension Plan [Member] \| Forecasted [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Discount rate assumptions used to determine net periodic benefit costs		3.60%
Expected return on plan assets assumptions used to determine net periodic benefit cost		5.80%
Rate of compensation increase assumptions used to determine net periodic benefit cost		0.20%
Domestic Plan [Member] \| Pension Plan [Member] \| Minimum [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year			$ 0
Domestic Plan [Member] \| Pension Plan [Member] \| Voluntary Contributions [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year			50
Domestic Plan [Member] \| Pension Plan [Member] \| Qualified Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Plan Assets, Contributions by Employer			650
Domestic Plan [Member] \| Pension Plan [Member] \| Qualified Plan [Member] \| Original Forecast [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Plan Assets, Contributions by Employer			135
Domestic Plan [Member] \| Pension Plan [Member] \| Qualified Plan [Member] \| Incremental to Forecast [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Plan Assets, Contributions by Employer	$ 500
Domestic Plan [Member] \| Pension Plan [Member] \| Qualified Plan [Member] \| Minimum [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Plan Assets, Contributions by Employer			15
Domestic Plan [Member] \| Pension Plan [Member] \| Qualified Plan [Member] \| Voluntary Contributions [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Plan Assets, Contributions by Employer			635
Foreign Plan [Member] \| Pension Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Plan Assets, Contributions by Employer			161	$ 154
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year			116
2018			241
2019			246
2020			252
2021			260
2022			266
Years 2023-2027			$ 1,436
Discount rate assumptions used to determine benefit obligations			2.30%	2.50%	3.30%
Rate of compensation increase assumptions used to determine benefit obligation			2.60%	2.60%	2.70%
Discount rate assumptions used to determine net periodic benefit costs			2.50%	3.30%	3.10%
Expected return on plan assets assumptions used to determine net periodic benefit cost			4.10%	4.80%	5.20%
Rate of compensation increase assumptions used to determine net periodic benefit cost			2.60%	2.70%	2.60%
Foreign Plan [Member] \| Pension Plan [Member] \| Forecasted [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Discount rate assumptions used to determine net periodic benefit costs		2.30%
Expected return on plan assets assumptions used to determine net periodic benefit cost		3.80%
Rate of compensation increase assumptions used to determine net periodic benefit cost		2.60%
Foreign Plan [Member] \| Pension Plan [Member] \| Qualified Plan [Member] \| Voluntary Contributions [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Plan Assets, Contributions by Employer			$ 105

Income and Other Taxes - Domestic and Foreign (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Domestic income	$ 399	$ 415	$ 613
Foreign income	171	153	311
Income Before Income Taxes and Equity Income	$ 570	$ 568	$ 924

Income and Other Taxes - Income Tax Expense (Benefit), Current Deferred, by Jurisdiction (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Current Federal Tax Expense (Benefit)

$ 7

$ (15)

$ (225)

Deferred Federal Income Tax Expense (Benefit)

411

^[1]

(4)

300

Current Foreign Tax Expense

Deferred Foreign Income Tax (Benefit) Expense

(21)

(13)

Current State Tax Expense (Benefit)

(38)

Deferred State Income Tax Expense

Total Provision

$ 481

$ 62

$ 193

[1]	Includes $400 estimated impact of the Tax Cuts and Jobs Act (the "Tax Act").

Income and Other Taxes - Reconciliation of Statutory Tax Rate to Effective Tax Rate (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

U.S. federal statutory income tax rate

35.00%

Nondeductible expenses

1.20%

2.90%

1.10%

Effect of tax law changes

70.20%

1.20%

(1.00%)

Change in valuation allowance for deferred tax assets

1.00%

(1.40%)

(1.60%)

State taxes, net of federal benefit

2.30%

3.00%

2.20%

Audit and other tax return adjustments

(8.00%)

(4.10%)

1.30%

Tax-exempt income, credits and incentives

(2.90%)

(4.00%)

(1.80%)

Foreign rate differential adjusted for U.S. taxation of foreign profits

^[1]

(15.20%)

(22.60%)

(15.30%)

Effective Income Tax Rate

0.90%

1.00%

84.50%

10.90%

20.90%

Income Taxes Paid

$ 84

$ 130

$ 138

[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, 2017

Dec. 31, 2016

Dec. 31, 2015

Discontinued Operation, Tax Effect of Discontinued Operation

Pre-tax income

$ 481

$ 62

$ 193

^[2]

(12)

^[1]

(250)

(134)

Total Income Tax Expense (Benefit)

(18)

538

(179)

115

Changes in defined benefit plans

Other comprehensive income (loss), tax

Cash flow hedges

Other comprehensive income (loss), tax

(8)

Translation adjustments

Other comprehensive income (loss), tax

$ 1

$ 2

$ 0

[1]	Primarily reflects changes in estimates.
[2]	Refer to Note 5 - 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, 2017

Dec. 31, 2016

Dec. 31, 2015

Balance, Beginning

$ 165

$ 222

$ 207

Additions (Reductions) related to current year

(9)

(46)

(31)

(5)

Settlements with taxing authorities

^[1]

(5)

(6)

(3)

(2)

(9)

Currency

(2)

(1)

Tax Positions assumed in Conduent Separation

(13)

Balance, Ending

125

165

222

Unrecognized Tax Benefits, Reasonably Possible but Uncertainty of Timing

Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued

$ 5

$ 10

$ 2

[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, 2017	Dec. 31, 2016
Deferred Tax Assets And Liabilities [Line Items]
U.S. statutory corporate tax rate before tax law change	35.00%
U.S. statutory corporate tax rate after tax law change	21.00%
Estimated non-cash tax provision	$ 400
Statutory income tax rate, inclusive of state taxes	25.00%
Undistributed Earnings of Foreign Subsidiaries		$ 0
Research and development	$ 143	289
Post-retirement medical benefits	183	276
Net operating losses	432	407
Operating reserves, accruals and deferrals	128	190
Tax credit carryforwards	646	751
Deferred and share-based compensation	43	76
Pension	308	660
Depreciation	106	8
Other	62	73
Subtotal	2,051	2,730
Valuation allowance	(435)	(416)
Total	1,616	2,314
Unearned income and installment sales	344	633
Intangibles and goodwill	134	200
Unremitted earnings of foreign subsidiaries	140	9
Other	14	39
Total	632	881
Total Deferred Taxes, Net	984	1,433
Valuation Allowance, Deferred Tax Asset, Change in Amount	19	$ 33
Deferred Tax Assets, Tax Credit Carryforwards	646
Net Operating Loss Carryforwards, Expire	800
Net Operating Loss Carryforwards, Indefinitely	1,800
Carryforward Indefinitely [Member]
Deferred Tax Assets And Liabilities [Line Items]
Deferred Tax Assets, Tax Credit Carryforwards	23
Carryforwards Expire [Member]
Deferred Tax Assets And Liabilities [Line Items]
Deferred Tax Assets, Tax Credit Carryforwards	623
Deemed repatriation tax [Member]
Deferred Tax Assets And Liabilities [Line Items]
Estimated non-cash tax provision	165
Other tax liabilities and adjustments [Member]
Deferred Tax Assets And Liabilities [Line Items]
Estimated non-cash tax provision	100
Deferred tax asset [Member]
Deferred Tax Assets And Liabilities [Line Items]
Estimated non-cash tax provision	$ 135

Contingencies and Litigation (Details) $ in Millions		1 Months Ended	12 Months Ended
Contingencies and Litigation (Details) $ in Millions	May 09, 2014	Feb. 28, 2018 complaint class_action	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Loss Contingencies [Line Items]
Letters of Credit Outstanding, Amount			$ 0	$ 0
Damages sought, multiplier of overpayment amounts	2
Product warranty expense			15	15	$ 22
Product warranty accrual			7	8
Brazil Tax And Labor Contingencies [Member]
Loss Contingencies [Line Items]
Unreserved tax and labor contingencies			600	$ 750
Escrow cash deposits			72
Net book value of assets with liens			0
Letters of Credit Outstanding, Amount			147
Surety Bonds Outstanding, Amount			$ 98
Subsequent Event \| Pending Litigation \| Transactions to Combine Xerox and Fuji Xerox
Loss Contingencies [Line Items]
Number of complaints filed \| complaint		5
Number of class actions filed \| class_action		4

Contingencies and Litigation - Other Contingencies (Details) $ in Millions	Dec. 31, 2017 USD ($)
Other contingencies letter of credits [Member]
Guarantor Obligations [Line Items]
Guarantor Obligations, Maximum exposure, undiscounted	$ 370

Preferred Stock (Details)
$ / shares in Units, $ in Millions

12 Months Ended

Jun. 14, 2017

Dec. 31, 2017

USD ($)

Days

$ / shares

Dec. 31, 2016

USD ($)

Dec. 31, 2015

USD ($)

Stockholders' Equity Note, Stock Split, Conversion Ratio

0.25

Preferred stock converted into common shares | shares

37.4532

Cash dividends declared-preferred stock

^[1],[2]

$ 14

$ 24

Total conversion of number of preferred stock shares into common stock, shares | shares

6,742,000

Total conversion of preferred stock shares into common stock, initial conversion price per share | $ / shares

$ 26.70

Common stock closing price, maximum threshold, triggering conversion of Pfd to Common Stock | $ / shares

$ 39

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 B [Member]

Preferred stock converted into common shares | shares

180,000

Preferred Stock, Liquidation Preference, Value

$ 180

Xerox Preferred Stock, Post Conversion Carrying Value, Shares Issued

$ 214

Preferred stock, dividend rate, percentage

8.00%

Cash dividends declared-preferred stock

$ 14

Common Stock [Member]

Cash dividends declared-preferred stock

^[1],[2]

$ 0

Reverse Stock Split [Member] | Common Stock [Member]

Stockholders' Equity Note, Stock Split, Conversion Ratio

0.25

[1]	Cash dividends declared on preferred stock of $20 per share in each quarter of 2017, 2016 and 2015.
[2]	Reflects our one-for-four reverse stock split that became effective on June 14, 2017. Refer to Note 1 - Basis of Presentation and Summary of Significant Accounting Policies for further information.

Shareholders' Equity - Equity Stocks Information (Details)	Jun. 14, 2017 shares	Dec. 31, 2017 $ / shares shares
Class of Stock [Line Items]
Stockholders' Equity Note, Stock Split, Conversion Ratio	0.25
Preferred Stock, Shares Authorized		22,000,000
Preferred Stock, Par or Stated Value Per Share \| $ / shares		$ 1.00
Common Stock, Shares Authorized		437,500,000
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		24,000,000
Convertible Debt [Member]
Class of Stock [Line Items]
Common Stock Shares Reserved for Future Issuance, Incentive Compensation		12,000,000
Series B [Member]
Class of Stock [Line Items]
Common Stock Shares Reserved for Future Issuance, Incentive Compensation		7,000,000
Common Stock [Member] \| Reverse Stock Split [Member]
Class of Stock [Line Items]
Stockholders' Equity Note, Stock Split, Conversion Ratio	0.25
Common Stock, Shares Authorized	437,500,000

Shareholders' Equity - Treasury Stock (Details) $ in Millions	12 Months Ended
	Dec. 31, 2017 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	173,807,000
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 in Thousands		12 Months Ended
	Jun. 14, 2017	Dec. 31, 2017 shares	Dec. 31, 2016 shares	Dec. 31, 2015 shares
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Acquisition of Treasury stock		173,807
Stockholders' Equity Note, Stock Split, Conversion Ratio	0.25
Common Stock [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, Beginning		253,594	253,209	281,089
Stock based compensation plans, net		1,019	385	2,823
Acquisition of Treasury stock				0
Cancellation of Treasury stock				(30,703)
Balance, Ending		254,613	253,594	253,209
Treasury Stock [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, Beginning		0	0	1,903
Stock based compensation plans, net		0	0	0
Acquisition of Treasury stock				28,800
Cancellation of Treasury stock				(30,703)
Balance, Ending		0	0	0

Shareholders' Equity - Total Stock-based Compensation Expense (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Stockholders' Equity Note [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	16,000,000	10,000,000
Stock-based compensation expense, pre-tax	$ 52	$ 50	$ 27
Income tax benefit recognized in earnings	$ 20	$ 19	$ 10
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]
Requisite service period	3 years
Share-based Compensation Arrangement by Share-based Payment Award - Maximum over-achievement	100.00%
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	2 years
All other participants [Member] \| 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

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Restricted Stock Units (RSUs) [Member]

Awards Other Than Options, Number of Shares [Roll Forward]

^[1]

1,807,000

598,000

3,049,000

1,436,000

1,793,000

^[1]

200,000

^[1]

(117,000)

(79,000)

^[1]

(2,548,000)

^[1]

(270,000)

(137,000)

^[1]

(103,000)

^[1]

Awards Other Than Options, Weighted Average Grant Date Fair Value [Roll Forward]

2,856,000

1,807,000

^[1]

598,000

^[1]

^[1],[2]

$ 30.10

$ 44.20

$ 38.00

31.39

38.28

^[1],[2]

44.32

^[1],[2]

36.99

38.48

^[1],[2]

31.44

^[1],[2]

29.03

40.48

^[1],[2]

37.08

^[1],[2]

Performance Shares [Member]

$ 30.65

$ 30.10

^[1],[2]

$ 44.20

^[1],[2]

Awards Other Than Options, Number of Shares [Roll Forward]

^[1]

5,054,000

5,802,000

5,180,000

1,349,000

1,320,000

^[1]

2,368,000

^[1]

(1,413,000)

(8,000)

^[1]

(817,000)

^[1]

(1,873,000)

(1,234,000)

^[1]

(929,000)

^[1]

Awards Other Than Options, Weighted Average Grant Date Fair Value [Roll Forward]

3,117,000

5,054,000

^[1]

5,802,000

^[1]

^[1],[2]

$ 33.98

$ 46.68

$ 45.44

32.80

37.40

^[1],[2]

42.72

^[1],[2]

37.44

45.32

^[1],[2]

31.60

^[1],[2]

34.59

47.36

^[1],[2]

42.96

^[1],[2]

Conduent [Domain] | Restricted Stock Units (RSUs) [Member]

$ 31.54

$ 33.98

^[1],[2]

$ 46.68

^[1],[2]

Awards Other Than Options, Number of Shares [Roll Forward]

Awards Other Than Options, Weighted Average Grant Date Fair Value [Roll Forward]

(786,000)

^[1]

Conduent [Domain] | Performance Shares [Member]

$ (0.00)

$ 40.28

^[1],[2]

$ (0.00)

^[1],[2]

Awards Other Than Options, Number of Shares [Roll Forward]

Awards Other Than Options, Weighted Average Grant Date Fair Value [Roll Forward]

(1,974,000)

^[1]

Conduent [Domain] | Stock options

$ (0.00)

$ 44.36

^[1],[2]

$ (0.00)

^[1],[2]

Awards Other Than Options, Number of Shares [Roll Forward]

Awards Other Than Options, Weighted Average Grant Date Fair Value [Roll Forward]

376,000

^[1]

(0.00)

^[1]

Xerox shares, granted in conversion [Member] | Restricted Stock Units (RSUs) [Member]

$ (0.00)

$ (26.80)

^[1],[2]

$ (0.00)

^[1],[2]

Awards Other Than Options, Number of Shares [Roll Forward]

Awards Other Than Options, Weighted Average Grant Date Fair Value [Roll Forward]

418,000

^[1]

Xerox shares, granted in conversion [Member] | Performance Shares [Member]

$ (0.00)

$ 30.10

^[1],[2]

$ (0.00)

^[1],[2]

Awards Other Than Options, Number of Shares [Roll Forward]

Awards Other Than Options, Weighted Average Grant Date Fair Value [Roll Forward]

1,148,000

^[1]

Awards, Stock Options, Number of Shares [Roll Forward]

$ (0.00)

$ 33.98

^[1],[2]

$ (0.00)

^[1],[2]

[1]	Share activity and weighted average grant date fair values include immaterial rounding due to our one-for-four reverse stock split.
[2]	Exercise price for stock options.

Shareholders' Equity - Share-based Compensation, Stock Option Activity (Details) - Stock Options [Member] - $ / shares

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

ACS Member

Outstanding at January 1, Shares

^[1]

780,000

1,529,000

Cancelled/expired, Shares

(98,000)

^[1]

(101,000)

^[1]

Exercised, Shares

(306,000)

^[1]

(648,000)

^[1]

Outstanding at December 31, Shares

^[1]

780,000

^[1]

Exercisable, Shares

^[1]

780,000

^[1]

Awards, Stock Options, Weighted Average Exercise Price [Roll Forward]

Outstanding at January 1, Weighted Average

^[1],[2]

$ 0.00

$ 27.48

$ 28.00

Cancelled/expired, Weighted Average

0.00

27.96

^[1],[2]

29.72

^[1],[2]

Exercised, Weighted Average

0.00

28.12

^[1],[2]

28.36

^[1],[2]

Outstanding at December 31, Weighted Average

0.00

^[1],[2]

27.48

^[1],[2]

Exercisable, Weighted Average

$ 0.00

^[1],[2]

$ 27.48

^[1],[2]

Conduent [Domain]

Awards, Stock Options, Number of Shares [Roll Forward]

Separation of Conduent, Shares

(376,000)

^[1]

0.00

^[1]

Awards, Stock Options, Weighted Average Exercise Price [Roll Forward]

Separation of Conduent, Weighted Average

$ 0.00

$ 26.80

^[1],[2]

$ 0.00

^[1],[2]

[1]	Share activity and weighted average grant date fair values include immaterial rounding due to our one-for-four reverse stock split.
[2]	Exercise price for stock options.

Shareholders' Equity - Share-based Compensation, Awards, Unrecognized Compensation (Details) $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized Compensation	$ 89
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized Compensation	$ 42
Awards Compensation Costs Remaining Weighted Average Vesting Term, (Years)	2 years 1 month
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized Compensation	$ 47
Awards Compensation Costs Remaining Weighted Average Vesting Term, (Years)	2 years

Shareholders' Equity - Share-based Compensation, Awards, Intrinsic Value (Details) $ in Millions	Dec. 31, 2017 USD ($)
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award Other Than Options [Line Items]
Aggregate intrinsic value of outstanding RSU and PS awards	$ 83
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award Other Than Options [Line Items]
Aggregate intrinsic value of outstanding RSU and PS awards	$ 91

Shareholders' Equity - Share-based Compensation, Awards, Intrinsic Value, Cash Received and Tax Benefit (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total Intrinsic Value - RSU and PS	$ 3	$ 3	$ 109
Cash Received	0	0	0
Tax Benefit - RSU and PS awards	1	1	33
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total Intrinsic Value - RSU and PS	40	0	35
Cash Received	0	0	0
Tax Benefit - RSU and PS awards	12	0	12
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total Intrinsic Value - Stock Options	0	3	14
Cash Received	0	9	19
Employee Service Share-based Compensation, Tax Benefit from Exercise of Stock Options	$ 0	$ 1	$ 5

Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Other Comprehensive Income [Abstract]

Translation Adjustment Gains (Losses), Pre-tax

$ 484

$ (345)

$ (651)

Translation Adjustment Gains (Losses), Net of Tax

^[1]

483

(347)

(651)

Changes in fair value of cash flow hedges (losses) gains, pre-tax

(28)

Changes in fair value of cash flow hedges (losses) gains, net of tax

(23)

Changes in cash flow hedges reclassed to earnings, pre-tax

^[2]

(40)

Changes in cash flow hedges reclassed to earnings, net of tax

^[2]

(28)

Other losses, pre-tax

(1)

(3)

Other losses, net of tax

(1)

(2)

Net Unrealized Gains (Losses), Pre-tax

(23)

Net Unrealized Gains (Losses), Net of Tax

^[1]

(15)

Net actuarial/prior service gains (losses), pre-tax

(118)

(73)

Net actuarial/prior service gains (losses), net of tax

(87)

(86)

Prior service amortization/curtailment, pre-tax

^[3]

(10)

(38)

Prior service amortization/curtailment, net of tax

^[3]

(7)

(6)

(23)

Actuarial loss amortization/settlement, pre-tax

^[3]

236

160

186

Actuarial loss amortization/settlement, net of tax

^[3]

158

109

126

Fuji Xerox changes in defined benefit plans, net, pre-tax

^[4]

(93)

Fuji Xerox changes in defined benefit plans, net, net of tax

^[4]

(93)

Other (losses) gains, pre-tax

^[5]

(138)

202

116

Other (losses) gains, net of tax

^[5]

(138)

203

115

Changes in Defined Benefit Plans Gains, Pre-tax

169

141

212

Changes in Defined Benefit Plans Gains, Net of Tax

^[1]

106

126

153

Other Comprehensive Income (Loss), Pre-tax

659

(227)

(401)

Other Comprehensive Income (Loss), Net of Tax

^[1]

590

(236)

(475)

Less: Other comprehensive income (loss) attributable to noncontrolling interests, pre-tax

(3)

(1)

Less: Other comprehensive income (loss) attributable to noncontrolling interests, net of tax

^[1]

(3)

(1)

Other Comprehensive Income (Loss) Attributable to Xerox, Pre-Tax

658

(224)

(400)

Other Comprehensive Income (Loss), Net Attributable to Xerox

^[1]

$ 589

$ (233)

$ (474)

[1]	Refer to Note 22 - Other Comprehensive Income (Loss) for gross components of Other Comprehensive Income (Loss), reclassification adjustments out of Accumulated Other Comprehensive Loss and related tax effects.
[2]	Reclassified to Cost of sales - refer to Note 15 - Financial Instruments for additional information regarding our cash flow hedges.
[3]	Reclassified to Total Net Periodic Benefit Cost - refer to Note 17 - Employee Benefit Plans for additional information.
[4]	Represents our share of Fuji Xerox's benefit plan changes.
[5]	Primarily represents currency impact on cumulative amount of benefit plan net actuarial losses and prior service credits in AOCL.

Other Comprehensive Loss - AOCL (Details) - USD ($)
$ in Millions

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

AOCL [Abstract]

Cumulative translation adjustments

$ (1,781)

$ (2,263)

$ (2,390)

Other unrealized (losses) gains, net

(12)

(13)

Benefit plans net actuarial losses and prior service credits

^[1]

(1,955)

(2,061)

(2,241)

Total Accumulated Other Comprehensive Loss Attributable to Xerox

$ (3,748)

$ (4,337)

$ (4,630)

[1]	Includes our share of Fuji Xerox.

Earnings (Loss) per Share - Reconciliation (Details)
$ / shares in Units, shares in Thousands, $ in Millions

12 Months Ended

Jun. 14, 2017

Dec. 31, 2017

USD ($)

$ / shares

Dec. 31, 2016

USD ($)

$ / shares

Dec. 31, 2015

USD ($)

$ / shares

Schedule of Basic And Diluted Earnings [Line Items]

Stockholders' Equity Note, Stock Split, Conversion Ratio

0.25

Basic Earnings (Loss) per Share:

Net income from continuing operations attributable to Xerox

$ 192

$ 622

$ 822

Adjusted Net income from continuing operations available to common shareholders

(14)

(24)

178

598

798

Net income (loss) from discontinued operations attributable to Xerox

(1,093)

(374)

Adjusted Net income (loss) available to common shareholders

$ 181

$ (495)

$ 424

Weighted-average common shares outstanding | shares

254,341

253,391

266,131

Continuing Operations (in dollars per share) | $ / shares

$ 0.70

$ 2.36

^[1]

$ 3.00

^[1]

Discontinued operations (in dollars per share) | $ / shares

0.01

(4.31)

^[1]

(1.41)

^[1]

Net income from continuing operations

$ 0.71

$ (1.95)

^[1]

$ 1.59

^[1]

Diluted Earnings (Loss) per Share:

$ 192

$ 622

$ 822

Adjusted net income from continuing operations available to common shareholders

(14)

(24)

178

598

798

Net income (loss) from discontinued operations attributable to Xerox

(1,093)

(374)

Adjusted Net income (loss) available to common shareholders

$ 181

$ (495)

$ 424

Weighted-average common shares outstanding | shares

254,341

253,391

266,131

Common shares issuable with respect to:

Adjusted Weighted average common shares outstanding | shares

256,570

255,995

269,056

Continuing Operations (in dollars per share) | $ / shares

$ 0.70

$ 2.33

^[1]

$ 2.97

^[1]

Discontinued operations (in dollars per share) | $ / shares

0.01

(4.26)

^[1]

(1.39)

^[1]

Total Diluted Earnings (Loss) per Share | $ / shares

$ 0.71

$ (1.93)

^[1]

$ 1.58

^[1]

Stock options

Common shares issuable with respect to:

Stock options, Restricted stock and performance shares | shares

174

324

Restricted stock and performance shares

Common shares issuable with respect to:

Stock options, Restricted stock and performance shares | shares

2,229

2,430

2,601

Earnings (loss) per share, diluted [Member]

Basic Earnings (Loss) per Share:

$ (14)

$ (24)

Diluted Earnings (Loss) per Share: