0001770450-20-000045 | 10-Q | XBRL Viewer

Less: Income from continuing operations attributable to noncontrolling interests

$ 90

$ 222

$ 115

$ 542

Less: Income from discontinued operations attributable to noncontrolling interests

Net Income Attributable to Xerox Holdings/Xerox

221

115

535

Other Comprehensive Income (Loss), Net

Translation adjustments, net

^[1]

179

(155)

(122)

Unrealized gains, net

^[1]

Changes in defined benefit plans, net

^[1]

(92)

(48)

(38)

Less: Other comprehensive income, net from continuing operations attributable to noncontrolling interests

^[1]

(202)

(157)

^[1]

Other Comprehensive Income (Loss), Net of Tax Attributable to Xerox Holdings/Xerox

^[1]

(203)

(158)

Comprehensive Income, Net

Comprehensive income, net

178

168

385

Less: Comprehensive income, net from continuing operations attributable to noncontrolling interests

Less: Comprehensive income, net from discontinued operations attributable to noncontrolling interests

Comprehensive Income, Net Attributable to Xerox Holdings/Xerox

178

168

377

Less: Income from continuing operations attributable to noncontrolling interests

101

222

126

542

Less: Income from discontinued operations attributable to noncontrolling interests

Net Income Attributable to Xerox Holdings/Xerox

101

221

126

535

Other Comprehensive Income (Loss), Net

Translation adjustments, net

^[1]

179

(155)

(122)

Unrealized gains, net

^[1]

Changes in defined benefit plans, net

^[1]

(92)

(48)

(38)

Less: Other comprehensive income, net from continuing operations attributable to noncontrolling interests

^[1]

(202)

(157)

^[1]

Other Comprehensive Income (Loss), Net of Tax Attributable to Xerox Holdings/Xerox

^[1]

(203)

(158)

Comprehensive Income, Net

Comprehensive income, net

189

179

385

Less: Comprehensive income, net from continuing operations attributable to noncontrolling interests

Less: Comprehensive income, net from discontinued operations attributable to noncontrolling interests

Comprehensive Income, Net Attributable to Xerox Holdings/Xerox

$ 189

$ 18

$ 179

$ 377

[1]	Refer to Note 19 - Other Comprehensive Income (Loss) for gross components of Other comprehensive income (loss), net, reclassification adjustments out of Accumulated other comprehensive loss and related tax effects.

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
shares in Thousands, $ in Millions

Sep. 30, 2020

Dec. 31, 2019

Assets

Cash and cash equivalents

$ 3,242

$ 2,740

Accounts receivable (net of allowances of $63 and $55, respectively)

^[1]

895

1,236

Billed portion of finance receivables (net of allowances of $4 and $3, respectively)

^[1]

111

Finance receivables due after one year (net of allowances of $138 and $86, respectively)

1,066

1,158

Inventories

978

694

Other current assets

249

201

Total current assets

6,541

6,140

^[1]

1,899

2,082

Land, buildings and equipment, net

301

364

412

426

Intangible assets, net

240

199

Goodwill

3,996

3,900

Deferred tax assets

573

598

Other long-term assets

1,390

1,338

Short-term debt and current portion of long-term debt

15,352

15,047

Liabilities and Equity

1,218

1,049

Accounts payable

1,018

1,053

Accrued compensation and benefits costs

276

349

Accrued expenses and other current liabilities

815

984

Total current liabilities

3,327

3,435

Pension and other benefit liabilities

3,836

3,233

1,675

1,707

Post-retirement medical benefits

336

352

Other long-term liabilities

512

Commitments and Contingencies (See Note 21)

9,686

9,239

Convertible Preferred Stock

214

Common stock

214

215

Additional paid-in capital

2,719

2,782

Treasury stock, at cost

(150)

(76)

Retained earnings

6,258

6,312

Accumulated other comprehensive loss

(3,593)

(3,646)

Xerox Holdings/Xerox shareholders’ equity

5,448

5,587

Noncontrolling interests

Total Equity

5,452

5,594

Total Liabilities and Equity

$ 15,352

$ 15,047

Shares of common stock issued

213,964

214,621

Treasury stock

(8,007)

(2,031)

Shares of Common Stock Outstanding

205,957

212,590

Cash and cash equivalents

Assets

$ 3,242

$ 2,740

Accounts receivable (net of allowances of $63 and $55, respectively)

^[1]

895

1,236

Billed portion of finance receivables (net of allowances of $4 and $3, respectively)

^[1]

111

Finance receivables due after one year (net of allowances of $138 and $86, respectively)

1,066

1,158

Inventories

978

694

Other current assets

257

201

Total current assets

6,549

6,140

^[1]

1,899

2,082

Land, buildings and equipment, net

301

364

412

426

Intangible assets, net

240

199

Goodwill

3,996

3,900

Deferred tax assets

573

598

Other long-term assets

1,390

1,338

Short-term debt and current portion of long-term debt

15,360

15,047

Liabilities and Equity

1,218

1,049

Accounts payable

1,018

1,053

Accrued compensation and benefits costs

276

349

Accrued expenses and other current liabilities

741

918

Total current liabilities

3,253

3,369

Pension and other benefit liabilities

2,343

3,233

1,675

1,707

Post-retirement medical benefits

336

352

Other long-term liabilities

512

Commitments and Contingencies (See Note 21)

8,119

9,173

Additional paid-in capital

4,859

3,266

Retained earnings

5,971

6,247

Accumulated other comprehensive loss

(3,593)

(3,646)

Xerox Holdings/Xerox shareholders’ equity

7,237

5,867

Noncontrolling interests

Total Equity

7,241

5,874

Total Liabilities and Equity

$ 15,360

$ 15,047

[1]	Allowances at September 30, 2020 determined in accordance with ASU 2016-13 adopted effective January 1, 2020 - refer to Notes 2, 8 and 9 for additional information.

Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($)
$ in Millions

9 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Accounts receivable, allowance for credit loss, current

^[1]

$ 63

$ 55

Financing receivables, allowance for credit loss, current

^[1]

Financing receivables, allowance for credit loss, noncurrent

^[1]

$ 138

Accounting Standards Update [Extensible List]

us-gaap:AccountingStandardsUpdate201613Member

Accounts receivable, allowance for credit loss, current

^[1]

$ 63

Financing receivables, allowance for credit loss, current

^[1]

Financing receivables, allowance for credit loss, noncurrent

^[1]

$ 138

$ 86

Accounting Standards Update [Extensible List]

us-gaap:AccountingStandardsUpdate201613Member

[1]	Allowances at September 30, 2020 determined in accordance with ASU 2016-13 adopted effective January 1, 2020 - refer to Notes 2, 8 and 9 for additional information.

Indicates amendment to accounting standards.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (f)(2)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (g)(1)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 65
-Paragraph 15
-Subparagraph (f)(2)
-URI http://asc.fasb.org/extlink&oid=121322162&loc=SL121327923-165333

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 10
-Section 65
-Paragraph 4
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121646688&loc=SL121648383-210437

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 65
-Paragraph 15
-Subparagraph (f)(1)
-URI http://asc.fasb.org/extlink&oid=121322162&loc=SL121327923-165333

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(i)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 65
-Paragraph 15
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121322162&loc=SL121327923-165333

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 10
-Section 65
-Paragraph 4
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121646688&loc=SL121648383-210437

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 65
-Paragraph 15
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121322162&loc=SL121327923-165333

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (h)(2)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 10
-Section 65
-Paragraph 4
-Subparagraph (e)(3)
-URI http://asc.fasb.org/extlink&oid=121646688&loc=SL121648383-210437

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 65
-Paragraph 15
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121322162&loc=SL121327923-165333

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(4)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(3)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(iv)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(iii)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (h)(1)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 65
-Paragraph 15
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121322162&loc=SL121327923-165333

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 65
-Paragraph 15
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121322162&loc=SL121327923-165333

Reference 24: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (c)(2)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 10
-Section 65
-Paragraph 4
-Subparagraph (e)(4)
-URI http://asc.fasb.org/extlink&oid=121646688&loc=SL121648383-210437

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 10
-Section 65
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121646688&loc=SL121648383-210437

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 65
-Paragraph 15
-Subparagraph (g)(2)
-URI http://asc.fasb.org/extlink&oid=121322162&loc=SL121327923-165333

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (f)(1)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 29: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 10
-Section 65
-Paragraph 4
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121646688&loc=SL121648383-210437

Reference 30: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(ii)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 31: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 65
-Paragraph 8
-Subparagraph (d)(2)

Reference 32: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 65
-Paragraph 8
-Subparagraph (d)(3)

Cash Flows from Operating Activities

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Millions

3 Months Ended

9 Months Ended

Sep. 30, 2020

Sep. 30, 2019

Sep. 30, 2020

Sep. 30, 2019

Income from discontinued operations, net of tax

$ 90

$ 222

$ 115

$ 542

(64)

(157)

Income from Continuing Operations

158

115

385

Adjustments required to reconcile Net income to Cash flows from operating activities

Depreciation and amortization

104

272

332

Provisions

124

Net gain on sales of businesses and assets

(28)

(19)

(29)

(20)

Stock-based compensation

Restructuring and asset impairment charges

Payments for restructurings

(11)

(17)

(63)

(71)

Defined benefit pension cost

Contributions to defined benefit pension plans

(33)

(37)

(97)

(107)

(Increase) decrease in accounts receivable and billed portion of finance receivables

(96)

332

(Increase) decrease in inventories

(49)

(274)

Increase in equipment on operating leases

(31)

(41)

(86)

(113)

Decrease in finance receivables

221

124

Decrease (increase) in other current and long-term assets

(14)

Increase (decrease) in accounts payable

(69)

(24)

Decrease in accrued compensation

(20)

(16)

(149)

(99)

(Decrease) increase in other current and long-term liabilities

(16)

(146)

Net change in income tax assets and liabilities

Net change in derivative assets and liabilities

(1)

Other operating, net

Net cash provided by operating activities of continuing operations

106

348

313

846

Net cash provided by operating activities of discontinued operations

Net cash provided by operating activities

106

356

313

895

Cash Flows from Investing Activities

Cost of additions to land, buildings, equipment and software

(18)

(17)

(60)

(48)

Proceeds from sales of businesses and assets

Acquisitions, net of cash acquired

(193)

(42)

Other investing, net

Net cash provided by (used in) investing activities

(223)

(68)

Cash Flows from Financing Activities

Net proceeds from short-term debt

Proceeds from issuance of long-term debt

1,849

1,854

Payments on long-term debt

(773)

(1,086)

(406)

Dividends

(61)

(176)

(183)

Payments to acquire treasury stock, including fees

(150)

(68)

(150)

(368)

Other financing, net

(10)

(19)

(33)

Net cash provided by (used in) financing activities

856

(137)

424

(983)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(20)

(12)

(13)

Increase (decrease) in cash, cash equivalents and restricted cash

983

203

502

(169)

Cash, cash equivalents and restricted cash at beginning of period

2,314

776

2,795

1,148

Cash, Cash Equivalents and Restricted Cash at End of Period

3,297

979

^[1]

3,297

979

^[1]

Cash Flows from Operating Activities

Income from discontinued operations, net of tax

101

222

126

542

(64)

(157)

Income from Continuing Operations

101

158

126

385

Adjustments required to reconcile Net income to Cash flows from operating activities

Depreciation and amortization

104

272

332

Provisions

124

Net gain on sales of businesses and assets

(28)

(19)

(29)

(20)

Stock-based compensation

Restructuring and asset impairment charges

Payments for restructurings

(11)

(17)

(63)

(71)

Defined benefit pension cost

Contributions to defined benefit pension plans

(33)

(37)

(97)

(107)

(Increase) decrease in accounts receivable and billed portion of finance receivables

(96)

332

(Increase) decrease in inventories

(49)

(274)

Increase in equipment on operating leases

(31)

(41)

(86)

(113)

Decrease in finance receivables

221

124

Decrease (increase) in other current and long-term assets

(14)

Increase (decrease) in accounts payable

(69)

(24)

Decrease in accrued compensation

(20)

(16)

(149)

(99)

(Decrease) increase in other current and long-term liabilities

(27)

(157)

Net change in income tax assets and liabilities

Net change in derivative assets and liabilities

(1)

Other operating, net

Net cash provided by operating activities of continuing operations

106

348

313

846

Net cash provided by operating activities of discontinued operations

Net cash provided by operating activities

106

356

313

895

Cash Flows from Investing Activities

Cost of additions to land, buildings, equipment and software

(18)

(17)

(60)

(48)

Proceeds from sales of businesses and assets

Acquisitions, net of cash acquired

(193)

(42)

Other investing, net

Net cash provided by (used in) investing activities

(223)

(68)

Cash Flows from Financing Activities

Net proceeds from short-term debt

Proceeds from issuance of long-term debt

342

347

Payments on long-term debt

(762)

(1,075)

(406)

Dividends

(59)

(181)

Payments to acquire treasury stock, including fees

(300)

Contributions from parent

1,494

Distributions to parent

(218)

(73)

(343)

(73)

Other financing, net

(1)

(7)

(30)

Net cash provided by (used in) financing activities

856

(137)

424

(983)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(20)

(12)

(13)

Increase (decrease) in cash, cash equivalents and restricted cash

983

203

502

(169)

Cash, cash equivalents and restricted cash at beginning of period

2,314

776

2,795

1,148

Cash, Cash Equivalents and Restricted Cash at End of Period

$ 3,297

$ 979

^[1]

$ 3,297

$ 979

^[1]

[1]	Balance at September 30, 2019 includes $1 associated with discontinued operations.

Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) $ in Millions	Sep. 30, 2019 USD ($)
Cash, cash equivalents and restricted cash associated with discontinued operations	$ 1
XEROX CORPORATION
Cash, cash equivalents and restricted cash associated with discontinued operations	$ 1

Basis of Presentation	9 Months Ended
Basis of Presentation	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation References to “Xerox Holdings” refer to Xerox Holdings Corporation and its consolidated subsidiaries while references to “Xerox” refer to Xerox Corporation and its consolidated subsidiaries. References herein to “we,” “us,” “our,” the “Company” refer collectively to both Xerox Holdings and Xerox unless the context suggests otherwise. The accompanying unaudited Condensed Consolidated Financial Statements and footnotes represent the respective, consolidated results and financial results of Xerox Holdings and Xerox and all respective companies that each registrant directly or indirectly controls, either through majority ownership or otherwise. This is a combined report of Xerox Holdings and Xerox, which includes separate unaudited Condensed Consolidated Financial Statements for each registrant. The accompanying unaudited Condensed Consolidated Financial Statements of both Xerox Holdings and Xerox have been prepared in accordance with the accounting policies described in the Combined 2019 Annual Report on Form 10-K ("2019 Annual Report"), except as noted herein, and the interim reporting requirements of Form 10-Q. Accordingly, certain information and note disclosures normally included in our annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. You should read these Condensed Consolidated Financial Statements in conjunction with the Consolidated Financial Statements included in the Combined 2019 Annual Report. In our opinion, all adjustments, which are necessary for a fair statement of financial position, operating results and cash flows for the interim periods presented, have been made. These adjustments consist of normal recurring items. Interim results of operations are not necessarily indicative of the results of the full year. As of September 30, 2020, the impact of the outbreak of COVID-19 continues to unfold. As a result, many of our estimates and assumptions have required increased judgment and carry a higher degree of variability and volatility. As events continue to evolve and additional information becomes available, our estimates may change materially in the future. For convenience and ease of reference, we refer to the financial statement caption “Income before Income Taxes and Equity Income” as “pre-tax income.” Notes to the Condensed Consolidated Financial Statements reflect the activity for both Xerox Holdings and Xerox for all periods presented, unless otherwise noted. Goodwill Interim Impairment Evaluation During the quarter ended June 30, 2020, we evaluated whether events or circumstances had changed such that it would indicate it is more likely than not that our Goodwill was impaired (trigger event). Factors considered in this evaluation included, among other things, the negative financial impacts from the COVID-19 pandemic on current and near-term future operations, the expected slower recovery during the latter half of 2020 as businesses return to their respective offices, as well as a sustained market capitalization below our book value. Based on this assessment, we concluded that a trigger event had occurred related to Goodwill and we completed an interim quantitative evaluation of Goodwill. As a result of limited market compares due to companies not providing guidance in this current economic environment, our interim quantitative evaluation of Goodwill was based on the income approach to estimate fair value. The income approach is based on the discounted cash flow method that uses the Company's estimates for future forecasted financial performance including revenues, operating expenses, and taxes, as well as working capital and capital asset requirements. Projected cash flows are then discounted to a present value employing a discount rate that properly accounts for the estimated market weighted-average cost of capital, as well as any risk unique to the subject cash flows. Our estimates regarding future forecasted cash flows accordingly reflected consideration of the continued negative financial impacts from the COVID-19 pandemic on our current and future operations as well expected recovery scenarios. After completing our interim impairment review, we concluded that Goodwill was not impaired in the second quarter because the Company’s estimated fair value exceeded the carrying value as of June 30, 2020. During the quarter ended September 30, 2020, although business performance improved, we determined that the continued negative impacts on our current operations resulting from the COVID-19 pandemic and the impacts expected on our future operations as well as a market capitalization that remains less than book value required us to qualitatively assess whether a triggering event had occurred and whether it was more likely than not that our goodwill was impaired as of September 30, 2020. Based on our interim qualitative assessment as of September 30, 2020, we determined that it was more-likely-than-not that the fair value of the Company was greater than the net book value and that we did not have a “triggering event” requiring a quantitative or Step 1 assessment of goodwill. Our review of macroeconomic and industry considerations, as well as the Company's financial results for the third quarter 2020, were consistent with the expectations and sensitivities assessed as part of our interim review performed in the second quarter 2020. Further, although our market capitalization remained below our net book value, the Company's market capitalization did improve in the third quarter 2020. If assumptions or estimates in the fair value calculations change or if future cash flows vary from what was expected, including those assumptions relating to the duration and severity of the financial impact from the COVID-19 pandemic, this may impact the impairment analysis and could reduce the underlying cash flows used to estimate fair values and result in a decline in fair value that may trigger future impairment charges. We normally assess goodwill for impairment during the fourth quarter and based on an updated evaluation of the impact of the events and factors noted in 2020 – macroeconomic, industry and company – we plan to utilize a quantitative model for the assessment of the recoverability of our goodwill balance.

Recent Accounting Pronouncements	9 Months Ended
Recent Accounting Pronouncements	Sep. 30, 2020
Accounting Standards Update and Change in Accounting Principle [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements Xerox Holdings and Xerox consider the applicability and impact of all Accounting Standards Updates (ASUs) issued by the Financial Accounting Standards Board (FASB). The ASUs listed below apply to both registrants. ASUs not listed below were assessed and determined to be not applicable to the Condensed Consolidated Financial Statements of either registrant. Accounting Standard Updates to be Adopted: Debt In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40). This update simplifies the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments and convertible preferred stock. This update also amends the guidance for the derivatives scope exception for contracts in an entity's own equity to reduce form-over-substance-based accounting conclusions and requires the application of the if-converted method for calculating diluted earnings per share. This update is effective for our fiscal year beginning January 1, 2022. We are currently evaluating the impact of the adoption of this standard on the Company’s consolidated financial statements and related disclosures. Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848), which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued. The amendments are effective for all entities as of March 12, 2020 through December 31, 2022. There has been no impact to date as a result of ASU 2020-04, however we continue to evaluate potential future impacts that may result from the discontinuation of LIBOR or other reference rates as well as the accounting provided in this update on our financial condition, results of operations, and cash flows. Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which was intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. This update is effective for our fiscal year beginning January 1, 2021. Although we continue to evaluate the effects of this update on our Consolidated Financial Statements, at this stage we do not expect the adoption to have a material impact on our results of operations, financial position or disclosures. Accounting Standard Updates Adopted in 2020: Leases In April 2020, the FASB staff issued a question and answer (Q&A) document on the application of lease accounting guidance related to lease concessions provided as a result of the economic disruption caused by the COVID-19 pandemic (Topic 842 Q&A). Topic 842 Q&A provides interpretive guidance allowing companies the option to account for lease concessions related to the COVID-19 pandemic consistent with how those concessions would be accounted for under ASU 2016-02, Leases (Topic 842), as though enforceable rights and obligations for those concessions existed at the beginning of the contract (regardless of whether those enforceable rights and obligations for the concessions explicitly exist in the contract). This interpretive guidance was issued in order to reduce the costs and complexities of applying lease modification accounting under Topic 842 to leases impacted by the effects of the COVID-19 pandemic. This election is available for concessions related to the effects of the COVID-19 pandemic that do not result in a substantial increase in the rights of the lessor or the obligations of the lessee. We have elected to apply the interpretive guidance provided in Topic 842 Q&A to rent concessions related to the COVID-19 pandemic provided as a Lessor to our customers and as received as a Lessee. Rent deferrals provided as a Lessor were primarily offered to customers with sales type lease receivables. We elected to account for the deferrals in the timing of lease payments as if there were no changes in the lease contracts. Under this approach, assuming that collectibility of future lease payments is still probable, the classification of the leases is not updated and we retain the balance of the deferral as a receivable and will settle that receivable at the revised payment date or dates. As of September 30, 2020, we approved payment deferrals of up to three months of approximately $33 or approximately 1% of our total finance receivable portfolio. The outstanding principal balance of receivables for customers with an approved payment deferral was approximately $337. Rent abatements to the extent provided were not material and were accounted for as write-offs as part of our normal bad debt reserve assessment. With respect to rent deferrals and abatements received as a Lessee, we elected to account for the deferrals and abatements as a resolution of a contingency within the lease. Under this approach, we follow the resolution of a contingency model in ASC 842 without reclassifying the lease or updating the discount rate. We remeasure the remaining consideration in the contract, reallocate it to the lease and non-lease components as applicable, and remeasure the lease liability with an adjustment to the right-of-use asset for the same amount. If the total lease payments remain exactly the same, the lease cost remains unchanged. The impact of this election was not material to our financial condition, results of operations or cash flows, as no rent concessions provided to Xerox in the second or third quarters of 2020 were material, individually or in the aggregate. Government Grants/Assistance As a result of the significant increase in governmental assistance during 2020, we updated our significant accounting policies as summarized in Note 1 - Basis of Presentation and Summary of Significant Accounting Policies to the Consolidated Financial Statements included on Form 10-K for the year ended December 31, 2019, as follows for the accounting associated with government assistance. Government grants related to income are recognized as a reduction of related expenses in the Condensed Consolidated Statements of Income when there is a reasonable assurance that the entity will comply with the conditions attached to the grant and that the grants will be received. The timing and pattern of recognition of government grants is made on a systematic basis over the periods in which the Company recognizes the related expenses or losses that the grants are intended to compensate. Financial Instruments - Credit Losses On January 1, 2020, we adopted ASU 2016-13, Financial Instruments Credit Losses - Measurement of Credit Losses on Financial Instruments. This update was issued by the FASB in June 2016, with additional updates and amendments being issued in 2018, 2019 and 2020 and requires measurement and recognition of expected credit losses for financial assets on an expected loss model rather than an incurred loss model. The update impacted financial assets including net investment in leases that are not accounted for at fair value through Net Income. The adoption of ASU 2016-13 primarily impacted the estimation of our Allowance for doubtful accounts for Accounts Receivable and Finance Receivables. The impact recorded on our initial adoption of ASU 2016-13 was not material as our previous methodology for assessing the adequacy of our Allowance for doubtful accounts for Finance Receivables, the larger component of our receivable reserves, incorporated an expected loss model and the methodology for both allowances included an assessment of current economic conditions. However, as previously disclosed, the future impact from this update is highly dependent on future economic conditions. Refer to Note 8 - Accounts Receivable, Net and Note 9 - Finance Receivable, Net for additional discussion regarding the impacts from the adoption of this update during the first quarter 2020. Intangibles - Internal-Use Software On January 1, 2020, we adopted ASU 2018-15, Intangibles - Goodwill and Other - Internal Use Software (Subtopic 350-40), Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. This update was issued by the FASB in August 2018 and aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The update provides criteria for determining which implementation costs to capitalize as an asset related to the service contract and which costs to expense. The capitalized implementation costs are required to be expensed over the term of the hosting arrangement. The update also clarifies the presentation requirements for reporting such costs in the entity’s financial statements. The adoption of ASU 2018-15 did not have a material impact on our financial condition, results of operations or cash flows as we had previously capitalized these implementation costs and such amounts were not material. Other Updates In 2020 and 2019, the FASB also issued the following ASUs, which impact the Company but did not have or 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: •Investments: ASU 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323) and Derivatives and Hedging (Topic 815). This update is effective for our fiscal year beginning January 1, 2021. •Compensation - Stock Compensation and Revenue from Contracts with Customers: ASU 2019-08, (Topic 718) and (Topic 606) Codification Improvements - Share-Based Consideration Payable to a Customer. This update was effective for our fiscal year beginning January 1, 2020. •Collaborative Arrangements: ASU 2018-18, (Topic 808) Clarifying the Interaction between Topic 808 and Topic 606. This update was effective for our fiscal year beginning January 1, 2020. •Fair Value Measurement: ASU 2018-13, (Topic 820) Disclosure Framework. This update was effective for our fiscal year beginning January 1, 2020.

The entire disclosure for change in accounting principle. Includes, but is not limited to, nature, reason, and method of adopting amendment to accounting standards or other change in accounting principle.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 65
-Paragraph 1
-Subparagraph (g)(2)
-URI http://asc.fasb.org/extlink&oid=113356391&loc=SL49131195-203048

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-URI http://asc.fasb.org/topic&trid=2122394

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 65
-Paragraph 1
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=113356391&loc=SL49131195-203048

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section S99
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=112272810&loc=SL108384541-122693

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 65
-Paragraph 1
-Subparagraph (i)(2)
-URI http://asc.fasb.org/extlink&oid=113356391&loc=SL49131195-203048

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(iii)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(4)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(ii)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(i)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 65
-Paragraph 15
-Subparagraph (g)(1)
-URI http://asc.fasb.org/extlink&oid=121322162&loc=SL121327923-165333

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 65
-Paragraph 1
-Subparagraph (j)
-URI http://asc.fasb.org/extlink&oid=113356391&loc=SL49131195-203048

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(iv)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 926
-SubTopic 20
-Section 65
-Paragraph 2
-Subparagraph (f)(1)
-URI http://asc.fasb.org/extlink&oid=120154821&loc=SL120154904-197079

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section S99
-Paragraph 5
-Subparagraph (SAB Topic 11.M.Q2)
-URI http://asc.fasb.org/extlink&oid=112272810&loc=d3e31137-122693

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 926
-SubTopic 20
-Section 65
-Paragraph 2
-Subparagraph (f)(2)
-URI http://asc.fasb.org/extlink&oid=120154821&loc=SL120154904-197079

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 926
-SubTopic 20
-Section 65
-Paragraph 2
-Subparagraph (f)(3)
-URI http://asc.fasb.org/extlink&oid=120154821&loc=SL120154904-197079

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 10
-Section 65
-Paragraph 4
-Subparagraph (e)(1)
-URI http://asc.fasb.org/extlink&oid=121646688&loc=SL121648383-210437

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (c)(1)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (h)(2)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 10
-Section 65
-Paragraph 4
-Subparagraph (e)(2)
-URI http://asc.fasb.org/extlink&oid=121646688&loc=SL121648383-210437

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(1)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 65
-Paragraph 8
-Subparagraph (e)(1)

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 65
-Paragraph 8
-Subparagraph (e)(2)

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 65
-Paragraph 8
-Subparagraph (e)(3)

Revenue from Contract with Customer [Abstract]

Revenue

9 Months Ended

Sep. 30, 2020

Revenue

Revenues disaggregated by primary geographic markets, major product lines, and sales channels are as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Primary geographical markets(1):
United States	$	1,062	$	1,343	$	3,101	$	3,955
Europe	480		521		1,317		1,705
Canada	94		123		278		377
Other	131		192		396		585
Total Revenues	$	1,767	$	2,179	$	5,092	$	6,622

Major product and services lines:
Equipment	$	419	$	494	$	1,054	$	1,446
Supplies, paper and other sales	232		290		622		862
Maintenance agreements(2)	443		567		1,338		1,774
Service arrangements(3)	486		611		1,512		1,883
Rental and other	132		157		396		473
Financing	55		60		170		184

Total Revenues	$	1,767	$	2,179	$	5,092	$	6,622

Sales channels:

Direct equipment lease(4)	$	151	$	200	$	388	$	484
Distributors & resellers(5)	245		301		604		949
Customer direct	255		283		684		875
Total Sales	$	651	$	784	$	1,676	$	2,308

_____________

(1)Geographic area data is based upon the location of the subsidiary reporting the revenue.

(2)Includes revenues from maintenance agreements on sold equipment as well as revenues associated with service agreements sold through our channel partners as Xerox Partner Print Services (XPPS).

(3)Primarily includes revenues from our Managed Services offerings. Also includes revenues from embedded operating leases, which were not significant.

(4)Primarily reflects direct sales through bundled lease arrangements.

(5)Primarily reflects sales through our two-tier distribution channels.

Contract Assets and Liabilities: We normally do not have contract assets, which are primarily unbilled accounts receivable that are conditional on something other than the passage of time. Our contract liabilities, which represent billings in excess of revenue recognized, are primarily related to advanced billings for maintenance and other services to be performed and were approximately $130 and $137 at September 30, 2020 and December 31, 2019, respectively. The balance at September 30, 2020 is expected to be amortized to revenue over approximately the next 30 months.

Contract Costs: Incremental direct costs of obtaining a contract primarily include sales commissions paid to sales people and agents in connection with the placement of equipment with associated post sale services arrangements. These costs are deferred and amortized on the straight-line basis over the estimated contract term of the post sale services arrangement, which is currently estimated to be approximately four years. We pay commensurate sales commissions upon customer renewals, therefore our amortization period is aligned to our initial contract term.

Incremental direct costs are as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Incremental direct costs of obtaining a contract	$	15	$	20	$	43	$	56
Amortization of incremental direct costs	19		23		60		66

The balance of deferred incremental direct costs net of accumulated amortization at September 30, 2020 and December 31, 2019 was $145 and $163, respectively. This amount is expected to be amortized over its estimated period of benefit, which we currently estimate to be approximately four years.

We may also incur costs associated with our services arrangements to generate or enhance resources and assets that will be used to satisfy our future performance obligations included in these arrangements. These costs are considered contract fulfillment costs and are amortized over the contractual service period of the arrangement to cost of services. In addition, we also provide inducements to certain customers in various forms, including contractual credits, which are capitalized and amortized as a reduction of revenue over the term of the contract. As of September 30, 2020 and December 31, 2019 amounts deferred associated with contract fulfillment costs and inducements were $12 and $13, respectively. The related amortization was $1 and $1 for the three months ended September 30, 2020 and 2019, respectively, and $3 and $4 for the nine months ended September 30, 2020 and 2019, respectively.

Equipment and software used in the fulfillment of service arrangements and where the Company retains control are capitalized and depreciated over the shorter of their useful life or the term of the contract if an asset is contract specific.

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Lessor

9 Months Ended

Sep. 30, 2020

Discontinued Operations and Disposal Groups [Abstract]

Lessor

Revenue from sales-type leases is presented on a gross basis when the company enters into a lease to realize value from a product that it would otherwise sell in its ordinary course of business, whereas in transactions where the company enters into a lease for the purpose of generating revenue by providing financing, the profit or loss, if any, is presented on a net basis. In addition, we have elected to account for sales tax and other similar taxes collected from a lessee as lessee costs and therefore we exclude these costs from contract consideration and variable consideration and present revenue net of these costs.

The components of lease income are as follows:


	Location in	Three Months Ended September 30,				Nine Months Ended September 30,
	Statements of Income	2020		2019		2020		2019
Revenue from sales type leases	Sales	$	151	$	200	$	388	$	484


Interest income on lease receivables	Financing	55		60		170		184


Lease income - operating leases	Services, maintenance and rentals	77		99		242		303
Variable lease income	Services, maintenance and rentals	15		25		51		80
Total Lease income		$	298	$	384	$	851	$	1,051

Profit at lease commencement on sales type leases was estimated to be approximately $52 and $86 for the three months ended September 30, 2020 and 2019, respectively and $138 and $206 for the nine months ended September 30, 2020 and 2019, respectively.

Lessor

The components of lease income are as follows:


	Location in	Three Months Ended September 30,				Nine Months Ended September 30,
	Statements of Income	2020		2019		2020		2019
Revenue from sales type leases	Sales	$	151	$	200	$	388	$	484


Interest income on lease receivables	Financing	55		60		170		184


Lease income - operating leases	Services, maintenance and rentals	77		99		242		303
Variable lease income	Services, maintenance and rentals	15		25		51		80
Total Lease income		$	298	$	384	$	851	$	1,051

Acquisitions	9 Months Ended
Acquisitions	Sep. 30, 2020
Business Combinations [Abstract]
Acquisitions	Acquisitions In 2020, Xerox continued its focus on further penetrating the small-to-medium sized business (SMB) market through acquisitions of local area resellers and partners (including multi-brand dealers). During the first quarter of 2020, business acquisitions associated with this initiative totaled $193, net of cash acquired, and included three acquisitions in the U.K. for $171 (GBP 132 million) - Arena Group, Altodigital Networks and ITEC Connect, as well an acquisition in Canada for approximately $22 (CAD 29 million). These acquisitions are expected to expand Xerox's presence in the SMB market in both Western Europe and Canada. The operating results of these acquisitions are not material to our financial statements and are included within our results from the acquisition date. The purchase prices were all cash for 100% ownership of the acquired companies and were primarily allocated to Intangible assets, net (approximately $70) and Goodwill (approximately $105), with the remainder to tangible net assets. The allocations are based on preliminary management estimates, which continue to be reviewed, and are expected to be finalized by the fourth quarter 2020 and may include input and support from third-party valuations. Any adjustments to the preliminary allocations are not expected to be material. Termination of Proposed Transaction with HP Inc. In November 2019, Xerox Holdings commenced a proposed business combination transaction with HP Inc. (HP). HP rejected our initial and subsequent proposals and refused to engage in mutual due diligence or negotiations. In January 2020, Xerox Holdings nominated a slate of directors to HP’s board to be voted on at HP’s 2020 annual meeting of stockholders and shortly thereafter, it launched a tender offer to acquire all outstanding shares of HP, as it intended to continue to pursue the proposed business combination transaction. However, the ongoing COVID-19 pandemic and resulting macroeconomic and market turmoil created an environment that the company determined was not conducive to Xerox Holdings continuing an acquisition of HP. Accordingly, on March 31, 2020 Xerox Holdings withdrew its tender offer to acquire HP and terminated its proxy solicitation to nominate a slate of candidates to HP’s board of directors. In 2020, Xerox Holdings had obtained $24 billion in financing commitments from several banks to support the cash portion of the proposed business combination transaction with HP. On March 31, 2020, following the withdrawal of Xerox Holdings' tender offer to acquire HP, notice was provided to the banks of the immediate termination of the financing commitment. No termination penalties were paid as a result of termination.

Divestitures

9 Months Ended

Sep. 30, 2020

Divestitures

Sales of Ownership Interests in Fuji Xerox Co., Ltd. and Xerox International Partners

In November 2019, Xerox Holdings completed a series of transactions to restructure its relationship with FUJIFILM Holdings Corporation (FH), including the sale of its indirect 25% equity interest in Fuji Xerox (FX), as well as the sale of its indirect 51% partnership interest in Xerox International Partners (XIP) (collectively the Sales). As a result of the Sales and the related strategic shift in our business, the historical financial results of our equity method investment in FX and our XIP business (which was consolidated) for the periods prior to the Sales are reflected as a discontinued operation and as such, their impact is excluded from continuing operations for all periods presented.

Summarized financial information for our Discontinued operations is as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Revenue	$	—	$	21	$	—	$	73

Income from operations(1)	$	—	$	64	$	—	$	159
Gain on disposal	—		—		—		—
Income before income taxes	—		64		—		159
Income tax expense	—		—		—		2
Income from discontinued operations, net of tax	—		64		—		157
Income from discontinued operations attributable to noncontrolling interests, net of tax	—		—		—		4
Income from discontinued operations, attributable to Xerox Holdings, net of tax	$	—	$	64	$	—	$	153

_____________

(1)Includes Equity in net income for FX of $57 and $132 for the three and nine months ended September 30, 2019, respectively.

Supplementary Financial Information

9 Months Ended

Sep. 30, 2020

Supplemental Financial Information [Abstract]

Supplementary Financial Information

Cash, Cash Equivalents and Restricted Cash

Cash, cash equivalents and restricted cash amounts were as follows:


	September 30, 2020		December 31, 2019
Cash and cash equivalents	$	3,242	$	2,740
Restricted cash
Litigation deposits in Brazil	39		55

Other restricted cash	16		—
Total Restricted cash	55		55
Cash, cash equivalents and restricted cash	$	3,297	$	2,795

Restricted cash primarily relates to escrow cash deposits made in Brazil associated with ongoing litigation. As more fully discussed in Note 21 - Contingencies and Litigation, various litigation matters in Brazil require us to make cash deposits to escrow as a condition of continuing the litigation. Restricted cash amounts are classified in our Condensed Consolidated Balance Sheets based on when the cash will be contractually or judicially released.

Restricted cash was reported in the Condensed Consolidated Balance Sheets as follows:


	September 30, 2020		December 31, 2019
Other current assets	$	16	$	—
Other long-term assets	39		55
Total Restricted cash	$	55	$	55

Supplemental Cash Flow Information

Summarized cash flow information is as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Provision for receivables	$	17	$	13	$	104	$	40
Provision for inventory	6		3		20		18
Provision for product warranty	3		3		6		10
Depreciation of buildings and equipment	21		24		64		77
Depreciation and obsolescence of equipment on operating leases	45		56		142		172
Amortization of internal use software	11		15		32		48

Amortization of acquired intangible assets	13		9		34		35
Amortization of customer contract costs(1)	20		24		63		70
Cost of additions to land, buildings and equipment	9		11		36		30
Cost of additions to internal use software	9		6		24		18
Common stock dividends - Xerox Holdings	57		57		165		172
Preferred stock dividends - Xerox Holdings	4		4		11		11



Repurchases related to stock-based compensation - Xerox Holdings	9		10		19		20

_____________

(1)Amortization of customer contract costs is reported in Decrease (increase) in other current and long-term assets in the Condensed Consolidated Statements of Cash Flows. Refer to Note 3 - Revenue for additional information on contract costs.

Accounts Receivable, Net

9 Months Ended

Sep. 30, 2020

Accounts Receivable, Net

Accounts receivable, net were as follows:


	September 30, 2020		December 31, 2019
Invoiced	$	731	$	980
Accrued(1)	227		311
Allowance for doubtful accounts	(63)		(55)
Accounts receivable, net	$	895	$	1,236

_____________

(1)Accrued receivables include amounts to be invoiced in the subsequent quarter for current services provided.

The allowance for doubtful accounts was as follows:



Balance at December 31, 2019	$	55
Provision	8
Charge-offs	(2)
Recoveries and other(1)	(1)
Balance at March 31, 2020	$	60
Provision	9
Charge-offs	(8)
Recoveries and other(1)	(1)
Balance at June 30, 2020	$	60
Provision	7
Charge-offs	(6)
Recoveries and other(1)	2
Balance at September 30, 2020	$	63

_____________

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

We perform ongoing credit evaluations of our customers and adjust credit limits based upon customer payment history and current creditworthiness. Consistent with our adoption of ASU 2016-13 effective January 1, 2020 (refer to Note 2 - Recent Accounting Pronouncements), the allowance for uncollectible accounts receivable is determined based on an assessment of past collection experience as well as consideration of current and future economic conditions and changes in our customer collection trends. Based on that assessment, and primarily as a result of the macroeconomic and market disruption caused by COVID-19, the allowance for doubtful accounts as a percent of gross accounts receivable increased to 6.6% at September 30, 2020 from 4.3% at December 31, 2019.

Accounts Receivable Sales Arrangements

Accounts receivable sales arrangements are utilized in the normal course of business as part of our cash and liquidity management. The accounts receivable sold are generally short-term trade receivables with payment due dates of less than 60 days. We have one facility in Europe that enables us to sell accounts receivable associated with our distributor network on an ongoing basis, without recourse. Under this 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.

Of the accounts receivable sold and derecognized from our balance sheet, $83 and $165 remained uncollected as of September 30, 2020 and December 31, 2019, respectively.

Accounts receivable sales activity was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Accounts receivable sales(1)	$	115	$	67	$	182	$	265

_____________

(1)Losses on sales were not material. Customers may also enter into structured-payable arrangements that require us to sell our receivables from that customer to a third-party financial institution, which then makes payments to us to settle the customer's receivable. In these instances, we ensure the sale of the receivables are bankruptcy-remote and the payment made to us is without recourse. The activity associated with these arrangements is not reflected in this disclosure, as payments under these arrangements have not been material and these are customer directed arrangements.

Finance Receivables, Net

Finance receivables include sales-type 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:


	September 30, 2020		December 31, 2019
Gross receivables	$	3,600	$	3,865
Unearned income	(382)		(425)
Subtotal	3,218		3,440
Residual values	—		—
Allowance for doubtful accounts	(142)		(89)
Finance receivables, net	3,076		3,351
Less: Billed portion of finance receivables, net	111		111
Less: Current portion of finance receivables not billed, net	1,066		1,158
Finance receivables due after one year, net	$	1,899	$	2,082

Finance Receivables – Allowance for Credit Losses and Credit Quality

Our finance receivable portfolios are primarily in the U.S., Canada and EMEA. 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.

Consistent with our adoption of ASU 2016-13 effective January 1, 2020 (refer to Note 2 - Recent Accounting Pronouncements), the allowance for credit losses is determined principally based on an assessment of origination year and past collection experience as well as consideration of current and future economic conditions and changes in our customer collection trends. Based on that assessment, and primarily as a result of the macroeconomic and market turmoil caused by COVID-19, the allowance for doubtful credit losses increased to 4.4% of gross finance receivables (net of unearned income) at September 30, 2020 from 2.6% at December 31, 2019. In assessing the level of reserve required as of September 30, 2020, we had to critically assess current and forecasted economic conditions in light of the COVID-19 pandemic to ensure we objectively included those expected impacts in the determination of our reserve. Our assessment also included current portfolio credit metrics and the level of reserves and write-offs we recorded on our receivable’s portfolio during the credit crisis in 2008/09 as additional reference points to objectively determine the adequacy of our allowance.

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 projected loss rates are primarily based upon historical loss experience adjusted for judgments about the probable effects of relevant observable data including current and future 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. We believe our estimates, including any qualitative adjustments, are reasonable and have considered all reasonably available information about past events, current conditions, and reasonable and supportable forecasts of future events and economic conditions. 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, with the exception of the updates required as part of our adoption of ASU 2016-13 effective January 1, 2020.

Since our allowance for doubtful finance receivables is effectively determined by geography, the risk characteristics in our finance receivable portfolio segments will generally be consistent with the risk factors associated with the economies of the countries/regions included in those geographies. Since EMEA is comprised of various countries and regional economies, the risk profile within that portfolio segment is somewhat more diversified due to the varying economic conditions among and within the countries. Charge-offs in the U.S. and EMEA remained fairly

steady during the first, second and third quarters of 2020 and as compared to the prior year. However, as reflected in our allowance for doubtful receivables, charge-offs are expected to increase over the remainder of the year and into 2021 as a result of the economic disruption related to the COVID-19 pandemic.

Amounts disclosed below for the nine months ended and at September 30, 2020 reflect the adoption of ASU 2016-13 in January 2020. Amounts disclosed below for comparable periods in 2019 reflect superseded guidance. The allowance for doubtful accounts as well as the related investment in finance receivables were as follows:


	United States		Canada(1)		EMEA(1)(2)		Total
Balance at December 31, 2019	$	59	$	11	$	19	$	89
Provision	35		6		25		66
Charge-offs	(3)		(1)		(4)		(8)
Recoveries and other(3)	—		(1)		—		(1)
Balance at March 31, 2020	$	91	$	15	$	40	$	146
Provision	3		1		—		4
Charge-offs	(5)		(1)		(2)		(8)
Recoveries and other(3)	—		1		—		1
Balance at June 30, 2020	$	89	$	16	$	38	$	143
Provision	6		—		3		9
Charge-offs	(6)		(2)		(5)		(13)
Recoveries and other(3)	—		1		2		3

Balance at September 30, 2020	$	89	$	15	$	38	$	142
Finance receivables as of September 30, 2020 collectively evaluated for impairment (4)	$	1,819	$	284	$	1,115	$	3,218

Balance at December 31, 2018	$	53	$	12	$	27	$	92
Provision	4		1		4		9
Charge-offs	(4)		(1)		(3)		(8)
Recoveries and other(3)	—		—		—		—
Balance at March 31, 2019	$	53	$	12	$	28	$	93
Provision	4		1		3		8
Charge-offs	(5)		(3)		(3)		(11)
Recoveries and other(3)	1		2		—		3
Balance at June 30, 2019	$	53	$	12	$	28	$	93
Provision	6		—		2		8
Charge-offs	(5)		(1)		(3)		(9)
Recoveries and other(3)	1		—		—		1

Balance at September 30, 2019	$	55	$	11	$	27	$	93
Finance receivables as of September 30, 2019 collectively evaluated for impairment(4)	$	1,900	$	324	$	1,157	$	3,381

_____________

(1)Prior year amounts have been recasted to include the Other geographic region, which was previously disclosed as a separate grouping, conforming to the current year's presentation.

(2)Includes developing market countries.

(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 $142 and $93 at September 30, 2020 and 2019, respectively.

In the U.S., customers are further evaluated by class based on the type of lease origination. The primary categories are direct, which primarily includes leases originated directly with end customers through bundled lease arrangements, and indirect, which includes lease financing to end-user customers who purchased equipment we sold to distributors or resellers. Indirect also includes leases originated through our XBS sales channel, which utilizes a combination of internal and third party leasing in its lease arrangements with end customers.

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

•Low Credit Risk: 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 & Poor's (S&P) rating of BBB- or better. Loss rates in this category in the normal course are generally less than 1%.

•Average Credit Risk: 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 in the normal course are generally in the range of 2% to 5%.

•High Credit Risk: 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 low and average credit risk 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 in the normal course are generally in the range of 7% to 10%.

Credit quality indicators are updated at least annually, or more frequently to the extent required by economic conditions, and the credit quality of any given customer can change during the life of the portfolio.

Details about our finance receivables portfolio based on geography, origination year and credit quality indicators are as follows:


	September 30, 2020														December 31, 2019
	2020		2019		2018		2017		2016		Prior		Total Finance Receivables		Total Finance Receivables
United States (Direct):
Low Credit Risk	$	117	$	160	$	144	$	87	$	48	$	7	$	563	$	640
Average Credit Risk	42		103		60		31		12		3		251		331
High Credit Risk	65		47		29		16		6		3		166		132
Total	$	224	$	310	$	233	$	134	$	66	$	13	$	980	$	1,103

United States (Indirect):
Low Credit Risk	$	154	$	180	$	103	$	45	$	14	$	1	$	497	$	258
Average Credit Risk	86		110		73		35		9		1		314		445
High Credit Risk	13		6		5		3		1		—		28		116
Total	$	253	$	296	$	181	$	83	$	24	$	2	$	839	$	819

Canada(1)
Low Credit Risk	$	24	$	34	$	26	$	11	$	8	$	2	$	105	$	163
Average Credit Risk	32		40		29		20		8		1		130		97
High Credit Risk	13		11		10		12		3		—		49		66
Total	$	69	$	85	$	65	$	43	$	19	$	3	$	284	$	326

EMEA(1)(2)
Low Credit Risk	$	128	$	189	$	145	$	73	$	29	$	6	$	570	$	655
Average Credit Risk	108		164		117		60		22		4		475		479
High Credit Risk	16		22		16		11		4		1		70		58
Total	$	252	$	375	$	278	$	144	$	55	$	11	$	1,115	$	1,192







Total Finance Receivables
Low Credit Risk	$	423	$	563	$	418	$	216	$	99	$	16	$	1,735	$	1,716
Average Credit Risk	268		417		279		146		51		9		1,170		1,352
High Credit Risk	107		86		60		42		14		4		313		372
Total	$	798	$	1,066	$	757	$	404	$	164	$	29	$	3,218	$	3,440

_____________

(1)Prior year amounts have been recasted to include the Other geographic region, which was previously disclosed as a separate grouping, conforming to the current year's presentation.

(2)Includes developing market countries.

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:


	September 30, 2020
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Direct	$	35	$	9	$	11	$	55	$	925	$	980	$	79
Indirect	23		6		3		32		807		839		—






Total United States	58		15		14		87		1,732		1,819		79
Canada(1)	7		2		1		10		274		284		19





EMEA(1)	12		3		3		18		1,097		1,115		37

Total	$	77	$	20	$	18	$	115	$	3,103	$	3,218	$	135

	December 31, 2019
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Direct	$	37	$	11	$	8	$	56	$	1,047	$	1,103	$	57
Indirect	25		5		3		33		786		819		—






Total United States	62		16		11		89		1,833		1,922		57
Canada(1)	8		2		1		11		315		326		17





EMEA(1)(2)	12		1		2		15		1,177		1,192		32

Total	$	82	$	19	$	14	$	115	$	3,325	$	3,440	$	106

_____________

(1)Includes developing market countries.

(2)Prior year amounts have been recasted to include the Other geographic region, which was previously disclosed as a separate grouping, conforming to the current year's presentation.

Secured Borrowings and Collateral

In July 2020, we sold $355 of U.S. based finance receivables to a consolidated special purpose entity (SPE), which funded the purchase through a secured loan agreement with a financial institution. As of September 30, 2020 the SPE holds $314 of total Finance receivables, net, which are included in our Condensed Consolidated Balance Sheet as collateral for the secured loan agreement. Refer to Note 13 - Debt, for additional information related to this arrangement including the related secured loan agreement.

Finance Receivables, Net

9 Months Ended

Sep. 30, 2020

Inventories and Equipment on Operating Leases, Net [Abstract]

Finance Receivables, Net

Accounts Receivable, Net

Accounts receivable, net were as follows:


	September 30, 2020		December 31, 2019
Invoiced	$	731	$	980
Accrued(1)	227		311
Allowance for doubtful accounts	(63)		(55)
Accounts receivable, net	$	895	$	1,236

_____________

(1)Accrued receivables include amounts to be invoiced in the subsequent quarter for current services provided.

The allowance for doubtful accounts was as follows:



Balance at December 31, 2019	$	55
Provision	8
Charge-offs	(2)
Recoveries and other(1)	(1)
Balance at March 31, 2020	$	60
Provision	9
Charge-offs	(8)
Recoveries and other(1)	(1)
Balance at June 30, 2020	$	60
Provision	7
Charge-offs	(6)
Recoveries and other(1)	2
Balance at September 30, 2020	$	63

_____________

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

Accounts Receivable Sales Arrangements

Of the accounts receivable sold and derecognized from our balance sheet, $83 and $165 remained uncollected as of September 30, 2020 and December 31, 2019, respectively.

Accounts receivable sales activity was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Accounts receivable sales(1)	$	115	$	67	$	182	$	265

_____________

Finance Receivables, Net

Finance receivables, net were as follows:


	September 30, 2020		December 31, 2019
Gross receivables	$	3,600	$	3,865
Unearned income	(382)		(425)
Subtotal	3,218		3,440
Residual values	—		—
Allowance for doubtful accounts	(142)		(89)
Finance receivables, net	3,076		3,351
Less: Billed portion of finance receivables, net	111		111
Less: Current portion of finance receivables not billed, net	1,066		1,158
Finance receivables due after one year, net	$	1,899	$	2,082

Finance Receivables – Allowance for Credit Losses and Credit Quality


	United States		Canada(1)		EMEA(1)(2)		Total
Balance at December 31, 2019	$	59	$	11	$	19	$	89
Provision	35		6		25		66
Charge-offs	(3)		(1)		(4)		(8)
Recoveries and other(3)	—		(1)		—		(1)
Balance at March 31, 2020	$	91	$	15	$	40	$	146
Provision	3		1		—		4
Charge-offs	(5)		(1)		(2)		(8)
Recoveries and other(3)	—		1		—		1
Balance at June 30, 2020	$	89	$	16	$	38	$	143
Provision	6		—		3		9
Charge-offs	(6)		(2)		(5)		(13)
Recoveries and other(3)	—		1		2		3

Balance at September 30, 2020	$	89	$	15	$	38	$	142
Finance receivables as of September 30, 2020 collectively evaluated for impairment (4)	$	1,819	$	284	$	1,115	$	3,218

Balance at December 31, 2018	$	53	$	12	$	27	$	92
Provision	4		1		4		9
Charge-offs	(4)		(1)		(3)		(8)
Recoveries and other(3)	—		—		—		—
Balance at March 31, 2019	$	53	$	12	$	28	$	93
Provision	4		1		3		8
Charge-offs	(5)		(3)		(3)		(11)
Recoveries and other(3)	1		2		—		3
Balance at June 30, 2019	$	53	$	12	$	28	$	93
Provision	6		—		2		8
Charge-offs	(5)		(1)		(3)		(9)
Recoveries and other(3)	1		—		—		1

Balance at September 30, 2019	$	55	$	11	$	27	$	93
Finance receivables as of September 30, 2019 collectively evaluated for impairment(4)	$	1,900	$	324	$	1,157	$	3,381

_____________

(1)Prior year amounts have been recasted to include the Other geographic region, which was previously disclosed as a separate grouping, conforming to the current year's presentation.

(2)Includes developing market countries.

(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 $142 and $93 at September 30, 2020 and 2019, respectively.

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

Details about our finance receivables portfolio based on geography, origination year and credit quality indicators are as follows:


	September 30, 2020														December 31, 2019
	2020		2019		2018		2017		2016		Prior		Total Finance Receivables		Total Finance Receivables
United States (Direct):
Low Credit Risk	$	117	$	160	$	144	$	87	$	48	$	7	$	563	$	640
Average Credit Risk	42		103		60		31		12		3		251		331
High Credit Risk	65		47		29		16		6		3		166		132
Total	$	224	$	310	$	233	$	134	$	66	$	13	$	980	$	1,103

United States (Indirect):
Low Credit Risk	$	154	$	180	$	103	$	45	$	14	$	1	$	497	$	258
Average Credit Risk	86		110		73		35		9		1		314		445
High Credit Risk	13		6		5		3		1		—		28		116
Total	$	253	$	296	$	181	$	83	$	24	$	2	$	839	$	819

Canada(1)
Low Credit Risk	$	24	$	34	$	26	$	11	$	8	$	2	$	105	$	163
Average Credit Risk	32		40		29		20		8		1		130		97
High Credit Risk	13		11		10		12		3		—		49		66
Total	$	69	$	85	$	65	$	43	$	19	$	3	$	284	$	326

EMEA(1)(2)
Low Credit Risk	$	128	$	189	$	145	$	73	$	29	$	6	$	570	$	655
Average Credit Risk	108		164		117		60		22		4		475		479
High Credit Risk	16		22		16		11		4		1		70		58
Total	$	252	$	375	$	278	$	144	$	55	$	11	$	1,115	$	1,192







Total Finance Receivables
Low Credit Risk	$	423	$	563	$	418	$	216	$	99	$	16	$	1,735	$	1,716
Average Credit Risk	268		417		279		146		51		9		1,170		1,352
High Credit Risk	107		86		60		42		14		4		313		372
Total	$	798	$	1,066	$	757	$	404	$	164	$	29	$	3,218	$	3,440

_____________

(1)Prior year amounts have been recasted to include the Other geographic region, which was previously disclosed as a separate grouping, conforming to the current year's presentation.

(2)Includes developing market countries.

The aging of our billed finance receivables is as follows:


	September 30, 2020
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Direct	$	35	$	9	$	11	$	55	$	925	$	980	$	79
Indirect	23		6		3		32		807		839		—






Total United States	58		15		14		87		1,732		1,819		79
Canada(1)	7		2		1		10		274		284		19





EMEA(1)	12		3		3		18		1,097		1,115		37

Total	$	77	$	20	$	18	$	115	$	3,103	$	3,218	$	135

	December 31, 2019
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Direct	$	37	$	11	$	8	$	56	$	1,047	$	1,103	$	57
Indirect	25		5		3		33		786		819		—






Total United States	62		16		11		89		1,833		1,922		57
Canada(1)	8		2		1		11		315		326		17





EMEA(1)(2)	12		1		2		15		1,177		1,192		32

Total	$	82	$	19	$	14	$	115	$	3,325	$	3,440	$	106

_____________

(1)Includes developing market countries.

(2)Prior year amounts have been recasted to include the Other geographic region, which was previously disclosed as a separate grouping, conforming to the current year's presentation.

Secured Borrowings and Collateral

Inventories and Equipment on Operating Leases, Net

9 Months Ended

Sep. 30, 2020

Inventories and Equipment on Operating Leases, Net

The following is a summary of Inventories by major category:


	September 30, 2020		December 31, 2019
Finished goods	$	823	$	576
Work-in-process	48		47
Raw materials	107		71
Total Inventories	$	978	$	694

The transfer of equipment from our inventories to equipment subject to an operating lease is presented in our Condensed 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:


	September 30, 2020		December 31, 2019
Equipment on operating leases	$	1,388	$	1,443
Accumulated depreciation	(1,087)		(1,079)
Equipment on operating leases, net	$	301	$	364

Total contingent rentals on operating leases, consisting principally of usage charges in excess of minimum contracted amounts, were $15 and $25 for the three months ended September 30, 2020 and 2019, respectively, and $51 and $80 for the nine months ended September 30, 2020 and 2019, respectively.

Secured Borrowings and Collateral

In July 2020, we sold the rights to payments under operating leases with an equipment net book value of $10 to a consolidated SPE, which funded the purchase through a secured loan agreement with a financial institution. As of September 30, 2020 the SPE holds $9 of Equipment on operating leases, net, which are included in our Condensed Consolidated Balance Sheet as collateral for the secured loan agreement. Refer to Note 13 - Debt, for additional information related to this arrangement including the related secured loan agreement.

Lessee

9 Months Ended

Sep. 30, 2020

Restructuring and Related Activities [Abstract]

Lessee

Operating Leases

We have operating leases for real estate and vehicles in our domestic and international operations and for certain equipment in our domestic operations. Additionally, we have identified embedded operating leases within certain supply chain contracts for warehouses, primarily within our domestic operations. Our leases have remaining terms of up to twelve years and a variety of renewal and/or termination options.

The components of lease expense are as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Operating lease expense	$	29	$	31	$	85	$	97
Short-term lease expense	5		6		15		16
Variable lease expense(1)	12		12		34		37
Sublease income	(1)		—		(2)		(1)

Total Lease expense	$	45	$	49	$	132	$	149

_____________

(1)Variable lease expense is related to our leased real estate for offices and warehouses and primarily includes labor and operational costs as well as taxes and insurance.

Operating leases right-of-use (ROU) assets, net and operating lease liabilities were reported in the Condensed Consolidated Balance Sheets as follows:


	September 30, 2020		December 31, 2019
Other long-term assets	$	323	$	319

Accrued expenses and other current liabilities	$	86	$	87
Other long-term liabilities	264		260
Total Operating lease liabilities	$	350	$	347

Supplemental information related to operating leases is as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020			2019
Cash paid for amounts included in the measurement of lease liabilities - Operating cash flows	$	31	$	31	$	89		$	95
ROU assets obtained in exchange for new lease liabilities (1)	$	17	$	5	$	73		$	28
Weighted-average remaining lease term					5 years			4 years
Weighted-average discount rate					5.06		%	5.63		%

_____________

(1)Includes the impact of new leases as well as remeasurements and modifications to existing leases.

Finance Leases

Xerox has finance leases for equipment and related infrastructure within outsourced warehouse supply arrangements in the U.S. and Europe. The leases have varying maturities up to six years with a maximum expiration date through December 2026. As of September 30, 2020 the remaining lease obligation for all finance leases is $9, based on a weighted-average discount rate of 4.41%. The Right-of-use asset balance associated with these finance leases of $11 is included in Land, buildings and equipment, net in the Condensed Consolidated Balance Sheet.

Lessee

Operating Leases

The components of lease expense are as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Operating lease expense	$	29	$	31	$	85	$	97
Short-term lease expense	5		6		15		16
Variable lease expense(1)	12		12		34		37
Sublease income	(1)		—		(2)		(1)

Total Lease expense	$	45	$	49	$	132	$	149

_____________

(1)Variable lease expense is related to our leased real estate for offices and warehouses and primarily includes labor and operational costs as well as taxes and insurance.

Operating leases right-of-use (ROU) assets, net and operating lease liabilities were reported in the Condensed Consolidated Balance Sheets as follows:


	September 30, 2020		December 31, 2019
Other long-term assets	$	323	$	319

Accrued expenses and other current liabilities	$	86	$	87
Other long-term liabilities	264		260
Total Operating lease liabilities	$	350	$	347

Supplemental information related to operating leases is as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020			2019
Cash paid for amounts included in the measurement of lease liabilities - Operating cash flows	$	31	$	31	$	89		$	95
ROU assets obtained in exchange for new lease liabilities (1)	$	17	$	5	$	73		$	28
Weighted-average remaining lease term					5 years			4 years
Weighted-average discount rate					5.06		%	5.63		%

_____________

(1)Includes the impact of new leases as well as remeasurements and modifications to existing leases.

Finance Leases

Restructuring Programs

9 Months Ended

Sep. 30, 2020

Restructuring Programs

We engage in restructuring actions, including Project Own It, as well as other transformation efforts in order to reduce our cost structure and realign it to the changing nature of our business and to achieve operating efficiencies through a number of opportunities, including reduction of our real estate footprint.

During the nine months ended September 30, 2020, we recorded net restructuring and asset impairment charges of $47, which included $57 of severance costs related to headcount reductions of approximately 1,100 employees worldwide, $2 of other contractual termination costs and $6 of asset impairment charges. These costs were partially offset by $18 of net reversals, primarily resulting from changes in estimated reserves from prior period initiatives.

Information related to restructuring program activity is outlined below:


	Severance and Related Costs		Other Contractual Termination Costs(2)		Asset Impairments(3)		Total
Balance at December 31, 2019	$	66	$	4	$	—	$	70
Provision	32		1		2		35
Reversals	(5)		—		(1)		(6)
Net current period charges(1)	27		1		1		29
Charges against reserve and currency	(36)		2		(1)		(35)
Balance at March 31, 2020	$	57	$	7	$	—	$	64
Provision	7		—		—		7
Reversals	(6)		(1)		(2)		(9)
Net current period charges(1)	1		(1)		(2)		(2)
Charges against reserve and currency	(14)		(1)		2		(13)
Balance at June 30, 2020	$	44	$	5	$	—	$	49
Provision	18		1		4		23
Reversals	(2)		—		(1)		(3)
Net current period charges(1)	16		1		3		20
Charges against reserve and currency	(8)		(2)		(3)		(13)
Balance at September 30, 2020	$	52	$	4	$	—	$	56

______________

(1)Represents net amount recognized within the Condensed Consolidated Statements of Income for the period shown for restructuring and asset impairment charges.

(2)Primarily includes additional costs incurred upon the exit from our facilities including decommissioning costs and associated contractual termination costs. Charges against reserve and currency for first quarter 2020 include a reclassification of $4 related to expected recovery from sublease.

(3)Primarily related to the exit and abandonment of leased and owned facilities. The charge includes the accelerated write-off of $3 for leased right-of-use assets and $3 for owned assets upon exit from the facilities, net of any potential sublease income and other recoveries.

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Charges against reserve and currency	$	(13)	$	(20)	$	(61)	$	(118)

Effects of foreign currency and other non-cash items	2		3		(2)		47
Restructuring cash payments	$	(11)	$	(17)	$	(63)	$	(71)

In connection with our restructuring programs, we also incurred certain related costs as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Retention related severance/bonuses(1)	$	(2)	$	11	$	9	$	31
Contractual severance costs(2)	—		3		4		41
Consulting and other costs(3)	2		5		4		24
Total	$	—	$	19	$	17	$	96

_____________

(1)Includes retention related severance and bonuses for employees expected to continue working beyond their minimum notification period before termination.

(2)Amounts for nine months ended September 30, 2019 include approximately $38 for estimated severance and other related costs we were contractually required to pay in connection with employees transferred as part of the shared service arrangement entered into with HCL Technologies in the first quarter 2019.

(3)Represents professional support services associated with our business transformation initiatives.

The restructuring related costs reserve as of September 30, 2020 was $33, which is expected to be paid over the next twelve months, as compared to $37 at December 31, 2019.

Debt

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Debt

Senior Notes

On August 6, 2020, Xerox Holdings issued $550 of 5.000% Senior Notes due August 2025 (the "2025 Senior Notes") at par and $550 of 5.500% Senior Notes due August 2028 (the "2028 Senior Notes") at par resulting in aggregate net proceeds (after fees and expenses) of approximately $1,089. On August 24, 2020, Xerox Holdings issued an additional $200 of the 2025 Senior Notes at 100.75% of par and an additional $200 of the 2028 Senior Notes at 102.50% of par resulting in additional aggregate net proceeds (after premium, fees and expenses) of approximately $405 for total aggregate net proceeds from both issuances of approximately $1,494.

The Notes are fully and unconditionally guaranteed by Xerox Corporation. In addition, the notes and the related guarantees were issued in a private placement only to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, and have not been registered for sale under the Securities Act or any state securities laws. Interest on the 2025 and 2028 Senior Notes is payable semi-annually.

Debt issuance costs of approximately $13 were paid and deferred in connection with the issuance of the 2025 and 2028 Senior Notes and will be amortized over the term of the Senior Notes. The net debt proceeds were contributed by Xerox Holdings to Xerox Corporation and used to repay $362 aggregate principal amount of 3.500% senior notes of Xerox Corporation and $376 aggregate principal amount of 2.750% senior notes of Xerox Corporation, which were both due in third quarter 2020. Xerox Corporation also used the balance of the net proceeds to prepay a portion of the 4.500% senior notes due 2021 in October 2020 (Refer to Note 18 – Shareholder's Equity of Xerox for additional information regarding the contribution and Note 22 - Subsequent Event for additional information regarding this prepayment).

Credit Facility

On July 31, 2020, Xerox and Xerox Holdings entered into Amendment No. 3 to the Credit Facility, which modified the financial covenants to require that, during a specified covenant modification period (which begins on the effective date of the Amendment and ends on the earlier of (1) December 31, 2021 and (2) the date on which Xerox delivers a written notice to the Administrative Agent electing to end such period (the “Financial Covenant Modification Period”), Xerox must maintain unrestricted cash (as defined in the Amendment) in an amount not less than $1.0 billion. Further, the Amendment relaxed the financial maintenance leverage covenant in the Credit Agreement by requiring that, during the Financial Covenant Modification Period, Xerox maintain a ratio of net debt

for borrowed money to consolidated EBITDA of not greater than 4.25:1.00 (with a cap on cash netting of $1.75 billion), in lieu of the 4.25:1.00 total debt for borrowed money to consolidated EBITDA ratio requirement applicable prior to the Amendment.

Secured Borrowings and Collateral

In July 2020, we entered into a secured loan agreement with a financial institution where we sold $355 of U.S. based finance receivables and the rights to payments under operating leases with an equipment net book value of $10 to a special purpose entity (SPE). The purchase by the SPE was funded through an amortizing secured loan to the SPE from the financial institution of $340. The sale of the receivables to the SPE was structured as a "true sale at law," and we have received an opinion to that effect from outside legal counsel. However, the transaction was accounted for as a secured borrowing as we consolidate the SPE since we have both the power to direct the activities that most significantly impact the SPE's economic performance through our role as servicer of all the receivables held by the SPE, and the obligation through variable interests in the SPE to absorb losses or receive benefits that could potentially be significant to the SPE. As a result, the assets of the SPE are not available to satisfy any of our other obligations. Conversely, the credit holder of this SPE does not have legal recourse to the Company’s general credit.

The debt has a variable interest rate based on LIBOR plus a spread (current rate of 1.73% at September 30, 2020) and an expected life of less than three years with half projected to be repaid within the first year based on collections of the underlying portfolio of receivables. We also entered into an interest rate hedge agreement to cap LIBOR over the life of the loan. The proceeds from this debt funded the cash used in May 2020 to repay the $313 aggregate principal amount of 2.80% Senior Notes due 2020 of Xerox Corporation.

Below are the assets and liabilities held by the consolidated SPE, which are included in our Condensed Consolidated Balance Sheet:


	September 30, 2020
Assets held by SPE
Finance receivables, net	$	132
Finance receivables due after one year, net	182
Equipment on operating leases, net	9
Total Assets	$	323
Liabilities held by SPE
Current portion of long-term debt, net(1)	$	158
Long term debt, net(2)	157
Total Liabilities	$	315

_____________

(1)Amounts net of unamortized debt issuance costs of $1.

(2)Amounts net of unamortized debt issuance costs of $1.

Interest Expense and Income

Interest expense and income were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Interest expense(1)	$	59	$	60	$	158	$	179
Interest income(2)	56		62		182		193

_____________

(1)Includes Cost of financing as well as non-financing interest expense that is included in Other expenses, net in the Condensed Consolidated Statements of Income.

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

Financial Instruments

9 Months Ended

Sep. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Financial Instruments

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.

Fair Value Hedges

During the first quarter 2020, we terminated our remaining pay variable/receive fixed interest rate swaps with notional amounts of $200 and net asset fair value of $4 prior to termination. The swaps had been designated and accounted for as fair value hedges prior to termination. 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 for the nine months ended September 30, 2020 prior to termination. The corresponding net fair value adjustment to the hedged debt of $(4) will be amortized to interest expense over the remaining term of the related notes.

Foreign Exchange Risk Management

We are a global company and 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:

•Forecasted purchases and sales in foreign currency

•Foreign currency-denominated assets and liabilities

At September 30, 2020 and December 31, 2019, we had outstanding forward exchange and purchased option contracts with gross notional values of $958 and $1,091 respectively, with terms of less than 12 months. Approximately 80% of the contracts at September 30, 2020 mature within three months, 9% mature in three to six months and 11% in six to twelve months. The associated currency exposures being hedged at September 30, 2020 were lower by 12% as compared to our year-end currency exposures. There has not been any material change in our hedging strategy.

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. The net asset (liability) fair value of these contracts were $1 and $(4) as of September 30, 2020 and December 31, 2019, respectively.

Summary of Derivative Instruments Fair Value

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


Designation of Derivatives	Balance Sheet Location	September 30, 2020		December 31, 2019
Derivatives Designated as Hedging Instruments
Foreign exchange contracts - forwards	Other current assets	$	3	$	1
	Accrued expenses and other current liabilities	(2)		(5)


Interest rate swaps	Other long-term assets	—		1

	Net designated derivative asset (liability)	$	1	$	(3)

Derivatives NOT Designated as Hedging Instruments
Foreign exchange contracts – forwards	Other current assets	$	4	$	1
	Accrued expenses and other current liabilities	(1)		(3)
	Net undesignated derivative asset (liability)	$	3	$	(2)

Summary of Derivatives	Total Derivative assets	$	7	$	3
	Total Derivative liabilities	(3)		(8)
	Net Derivative asset (liability)	$	4	$	(5)

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 (losses).

Designated Derivative Instruments Gains (Losses)

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


	Three Months Ended September 30,				Nine Months Ended September 30,
Gain (Loss) on Derivative Instruments	2020		2019		2020		2019
Fair Value Hedges - Interest Rate Contracts
Derivative (loss) gain recognized in interest expense	$	—	$	—	$	(1)	$	4
Hedged item gain (loss) recognized in interest expense	—		—		1		(4)

Cash Flow Hedges - Foreign Exchange Forward Contracts and Options
Derivative gain recognized in OCI (effective portion)	$	1	$	4	$	5	$	10
Derivative gain reclassified from AOCL to income - Cost of sales (effective portion)	—		3		1		6

During the three and nine months ended September 30, 2020 and 2019, no amount of ineffectiveness was recorded in the Condensed Consolidated Statements of Income for these designated cash flow hedges and all components of each derivative’s gain or (loss) were included in the assessment of hedge effectiveness. In addition, no amount was recorded for an underlying exposure that did not occur or was not expected to occur.

As of September 30, 2020, a net after-tax gain of $2 was 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 remeasurement of the underlying foreign currency-denominated asset or liability.

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


Derivatives NOT Designated as Hedging Instruments	Location of Derivative Gain	Three Months Ended September 30,				Nine Months Ended September 30,
		2020		2019		2020		2019
Foreign exchange contracts – forwards	Other expense – Currency gain, net	$	2	$	2	$	19	$	3

For the three and nine months ended September 30, 2020 currency losses, net were $0 and $4, respectively, and for the three and nine months ended September 30, 2019 were $4 and $6, respectively. Net currency gains and losses include the mark-to-market adjustments of the derivatives not designated as hedging instruments and the related cost of those derivatives as well as the remeasurement of foreign currency-denominated assets and liabilities and are included in Other expenses, net.

Fair Value of Financial Assets and Liabilities

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Fair Value of Financial Assets and Liabilities

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


	September 30, 2020		December 31, 2019
Assets
Foreign exchange contracts - forwards	$	7	$	2

Interest rate swaps	—		1

Deferred compensation investments in mutual funds	18		19
Total	$	25	$	22
Liabilities
Foreign exchange contracts - forwards	$	3	$	8



Deferred compensation plan liabilities	17		18
Total	$	20	$	26

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

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

Summary of Other Financial Assets and Liabilities

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


	September 30, 2020				December 31, 2019
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Cash and cash equivalents	$	3,242	$	3,242	$	2,740	$	2,740
Accounts receivable, net	895		895		1,236		1,236
Short-term debt and current portion of long-term debt	1,218		1,240		1,049		1,054
Long-term debt	3,836		3,899		3,233		3,331

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-term debt, including the current portion of long-term debt, 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.

+ References + Details

Employee Benefit Plans

9 Months Ended

Sep. 30, 2020

Retirement Benefits [Abstract]

Employee Benefit Plans

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


	Three Months Ended September 30,
	Pension Benefits
	U.S. Plans				Non-U.S. Plans				Retiree Health
Components of Net Periodic Benefit Costs:	2020		2019		2020		2019		2020		2019
Service cost	$	—	$	1	$	5	$	5	$	1	$	—
Interest cost	21		25		29		37		2		3
Expected return on plan assets	(27)		(26)		(49)		(56)		—		—
Recognized net actuarial loss (gain)	6		7		15		10		—		(1)
Amortization of prior service credit	—		—		(1)		—		(19)		(19)
Recognized settlement loss	10		18		—		—		—		—

Defined benefit plans	10		25		(1)		(4)		(16)		(17)
Defined contribution plans	(10)		6		6		5		n/a		n/a
Net Periodic Benefit Cost (Credit)	—		31		5		1		(16)		(17)

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss):
Net actuarial loss (gain)(1)	77		135		—		—		—		(9)
Amortization of net actuarial (loss) gain	(16)		(25)		(15)		(10)		—		1
Amortization of net prior service credit	—		—		1		—		19		19

Total Recognized in Other Comprehensive Income (Loss)(2)	61		110		(14)		(10)		19		11
Total Recognized in Net Periodic Benefit Cost (Credit) and Other Comprehensive Income (Loss)	$	61	$	141	$	(9)	$	(9)	$	3	$	(6)

	Nine Months Ended September 30,
	Pension Benefits
	U.S. Plans				Non-U.S. Plans				Retiree Health
Components of Net Periodic Benefit Costs:	2020		2019		2020		2019		2020		2019
Service cost	$	1	$	2	$	15	$	17	$	2	$	1
Interest cost	65		83		84		114		8		11
Expected return on plan assets	(79)		(77)		(142)		(174)		—		—
Recognized net actuarial loss (gain)	20		18		43		32		(1)		(3)
Amortization of prior service credit	(1)		(1)		(1)		(1)		(57)		(57)
Recognized settlement loss	42		76		—		—		—		—
Recognized curtailment gain	—		—		(1)		—		—		—
Defined benefit plans	48		101		(2)		(12)		(48)		(48)
Defined contribution plans	1		19		16		17		n/a		n/a
Net Periodic Benefit Cost (Credit)	49		120		14		5		(48)		(48)

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss):
Net actuarial (gain) loss(1)	(3)		171		—		—		(6)		(9)
Amortization of net actuarial (loss) gain	(62)		(94)		(43)		(32)		1		3
Amortization of prior service credit	1		1		1		1		57		57

Total Recognized in Other Comprehensive Income (Loss)(2)	(64)		78		(42)		(31)		52		51
Total Recognized in Net Periodic Benefit (Credit) Cost and Other Comprehensive Income (Loss)	$	(15)	$	198	$	(28)	$	(26)	$	4	$	3

_____________

(1)The net actuarial (gain) loss for U.S. Plans primarily reflects (i) the remeasurement of our primary U.S. pension plans as a result of the payment of periodic settlements and (ii) adjustments for the actuarial valuation results based on January 1st plan census data.

(2)Amounts represent the pre-tax effect included within Other Comprehensive Income (Loss). Refer to Note 19 - Other Comprehensive Income (Loss) for related tax effects and the after-tax amounts.

Contributions

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


	Nine Months Ended September 30,				Year Ended December 31,
	2020		2019		Estimated 2020		2019
U.S. plans	$	18	$	19	$	25	$	26
Non-U.S. plans	79		88		110		115
Total Pension	$	97	$	107	$	135	$	141

Retiree Health	$	17	$	22	$	30	$	30

There are no mandatory contributions required in 2020 for our U.S. tax-qualified defined benefit plans to meet the minimum funding requirements.

Defined Contribution Plans

In the third quarter 2020, the Company temporarily suspended and will not make its full year 2020 employer match/contribution for its U.S. based 401(k) saving plans for salaried employees. The suspension is expected to result in savings of approximately $25 for the year ending December 31, 2020.

The entire disclosure for retirement benefits.

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 55
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=118257860&loc=d3e4179-114921

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section S99
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=21916913&loc=d3e273930-122802

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (d)(i)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (o)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (p)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 70
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=49170846&loc=d3e28014-114942

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-URI http://asc.fasb.org/topic&trid=2235017

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 60
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6414203&loc=d3e39689-114964

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (d)(iv)(03)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (q)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (r)(1)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (d)(iii)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (l)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (r)(2)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

Stockholders' Equity Note [Abstract]

Shareholders' Equity of Xerox Holdings

9 Months Ended

Sep. 30, 2020

Shareholders' Equity of Xerox Holdings

Shareholders’ Equity of Xerox Holdings

(shares in thousands)

The shareholders' equity information presented below reflects the consolidated activity of Xerox Holdings.


	Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL(1)		Xerox Holdings Shareholders’ Equity		Non-controlling Interests		Total Equity
Balance at June 30, 2020	$	213	$	2,722	$	—	$	6,223	$	(3,681)	$	5,477	$	4	$	5,481

Comprehensive income, net	—		—		—		90		88		178		—		178
Cash dividends declared - common(2)	—		—		—		(51)		—		(51)		—		(51)
Cash dividends declared - preferred(3)	—		—		—		(4)		—		(4)		—		(4)


Stock option and incentive plans, net	1		(3)		—		—		—		(2)		—		(2)

Payments to acquire treasury stock, including fees	—		—		(150)		—		—		(150)		—		(150)



Balance at September 30, 2020	$	214	$	2,719	$	(150)	$	6,258	$	(3,593)	$	5,448	$	4	$	5,452


	Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL(1)		Xerox Holdings Shareholders’ Equity		Non- controlling Interests		Total Equity
Balance at June 30, 2019	$	225	$	3,124	$	(131)	$	5,391	$	(3,647)	$	4,962	$	30	$	4,992

Comprehensive income (loss), net	—		—		—		221		(203)		18		2		20
Cash dividends declared - common(2)	—		—		—		(56)		—		(56)		—		(56)
Cash dividends declared - preferred(3)	—		—		—		(4)		—		(4)		—		(4)


Stock option and incentive plans, net	—		3		—		—		—		3		—		3

Payments to acquire treasury stock, including fees	—		—		(68)		—		—		(68)		—		(68)
Cancellation of treasury stock	(4)		(127)		131		—		—		—		—		—
Distributions to noncontrolling interests	—		—		—		—		—		—		(1)		(1)

Balance at September 30, 2019	$	221	$	3,000	$	(68)	$	5,552	$	(3,850)	$	4,855	$	31	$	4,886


	Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL(1)		Xerox Holdings Shareholders’ Equity		Non-controlling Interests		Total Equity
Balance at December 31, 2019	$	215	$	2,782	$	(76)	$	6,312	$	(3,646)	$	5,587	$	7	$	5,594

Comprehensive income, net	—		—		—		115		53		168		—		168
Cash dividends declared - common(2)	—		—		—		(158)		—		(158)		—		(158)
Cash dividends declared - preferred(3)	—		—		—		(11)		—		(11)		—		(11)


Stock option and incentive plans, net	1		11		—		—		—		12		—		12

Payments to acquire treasury stock, including fees	—		—		(150)		—		—		(150)		—		(150)
Cancellation of treasury stock	(2)		(74)		76		—		—		—		—		—
Distributions to noncontrolling interests	—		—		—		—		—		—		(3)		(3)

Balance at September 30, 2020	$	214	$	2,719	$	(150)	$	6,258	$	(3,593)	$	5,448	$	4	$	5,452


	Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL(1)		Xerox Holdings Shareholders’ Equity		Non- controlling Interests		Total Equity
Balance at December 31, 2018	$	232	$	3,321	$	(55)	$	5,072	$	(3,565)	$	5,005	$	34	$	5,039
Cumulative effect of change in accounting principle	—		—		—		127		(127)		—		—		—
Comprehensive income (loss), net	—		—		—		535		(158)		377		8		385
Cash dividends declared - common(2)	—		—		—		(171)		—		(171)		—		(171)
Cash dividends declared - preferred(3)	—		—		—		(11)		—		(11)		—		(11)


Stock option and incentive plans, net	—		23		—		—		—		23		—		23

Payments to acquire treasury stock, including fees	—		—		(368)		—		—		(368)		—		(368)
Cancellation of treasury stock	(11)		(344)		355		—		—		—		—		—
Distributions to noncontrolling interests	—		—		—		—		—		—		(11)		(11)

Balance at September 30, 2019	$	221	$	3,000	$	(68)	$	5,552	$	(3,850)	$	4,855	$	31	$	4,886

_____________

(1)Refer to Note 19 - Other Comprehensive Income (Loss) for the components of AOCL.

(2)Cash dividends declared on common stock for the three and nine months ended September 30, 2020 and 2019 were $0.25 per share and $0.75 per share, respectively.

(3)Cash dividends declared on preferred stock for the three and nine months ended September 30, 2020 and 2019 were $20.00 per share and $60.00 per share, respectively.

Treasury Stock

The following is a summary of the purchases of common stock during 2020:


	Shares	Amount
Balance at December 31, 2019	2,031	$	76
Purchases(1)	8,007	150
Cancellations	(2,031)	(76)
Balance at September 30, 2020	8,007	$	150

_____________

(1)Includes associated fees.

Shareholders' Equity of Xerox

9 Months Ended

Sep. 30, 2020

Shareholders' Equity of Xerox

Shareholders’ Equity of Xerox Holdings

(shares in thousands)

The shareholders' equity information presented below reflects the consolidated activity of Xerox Holdings.


	Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL(1)		Xerox Holdings Shareholders’ Equity		Non-controlling Interests		Total Equity
Balance at June 30, 2020	$	213	$	2,722	$	—	$	6,223	$	(3,681)	$	5,477	$	4	$	5,481

Comprehensive income, net	—		—		—		90		88		178		—		178
Cash dividends declared - common(2)	—		—		—		(51)		—		(51)		—		(51)
Cash dividends declared - preferred(3)	—		—		—		(4)		—		(4)		—		(4)


Stock option and incentive plans, net	1		(3)		—		—		—		(2)		—		(2)

Payments to acquire treasury stock, including fees	—		—		(150)		—		—		(150)		—		(150)



Balance at September 30, 2020	$	214	$	2,719	$	(150)	$	6,258	$	(3,593)	$	5,448	$	4	$	5,452


	Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL(1)		Xerox Holdings Shareholders’ Equity		Non- controlling Interests		Total Equity
Balance at June 30, 2019	$	225	$	3,124	$	(131)	$	5,391	$	(3,647)	$	4,962	$	30	$	4,992

Comprehensive income (loss), net	—		—		—		221		(203)		18		2		20
Cash dividends declared - common(2)	—		—		—		(56)		—		(56)		—		(56)
Cash dividends declared - preferred(3)	—		—		—		(4)		—		(4)		—		(4)


Stock option and incentive plans, net	—		3		—		—		—		3		—		3

Payments to acquire treasury stock, including fees	—		—		(68)		—		—		(68)		—		(68)
Cancellation of treasury stock	(4)		(127)		131		—		—		—		—		—
Distributions to noncontrolling interests	—		—		—		—		—		—		(1)		(1)

Balance at September 30, 2019	$	221	$	3,000	$	(68)	$	5,552	$	(3,850)	$	4,855	$	31	$	4,886


	Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL(1)		Xerox Holdings Shareholders’ Equity		Non-controlling Interests		Total Equity
Balance at December 31, 2019	$	215	$	2,782	$	(76)	$	6,312	$	(3,646)	$	5,587	$	7	$	5,594

Comprehensive income, net	—		—		—		115		53		168		—		168
Cash dividends declared - common(2)	—		—		—		(158)		—		(158)		—		(158)
Cash dividends declared - preferred(3)	—		—		—		(11)		—		(11)		—		(11)


Stock option and incentive plans, net	1		11		—		—		—		12		—		12

Payments to acquire treasury stock, including fees	—		—		(150)		—		—		(150)		—		(150)
Cancellation of treasury stock	(2)		(74)		76		—		—		—		—		—
Distributions to noncontrolling interests	—		—		—		—		—		—		(3)		(3)

Balance at September 30, 2020	$	214	$	2,719	$	(150)	$	6,258	$	(3,593)	$	5,448	$	4	$	5,452


	Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL(1)		Xerox Holdings Shareholders’ Equity		Non- controlling Interests		Total Equity
Balance at December 31, 2018	$	232	$	3,321	$	(55)	$	5,072	$	(3,565)	$	5,005	$	34	$	5,039
Cumulative effect of change in accounting principle	—		—		—		127		(127)		—		—		—
Comprehensive income (loss), net	—		—		—		535		(158)		377		8		385
Cash dividends declared - common(2)	—		—		—		(171)		—		(171)		—		(171)
Cash dividends declared - preferred(3)	—		—		—		(11)		—		(11)		—		(11)


Stock option and incentive plans, net	—		23		—		—		—		23		—		23

Payments to acquire treasury stock, including fees	—		—		(368)		—		—		(368)		—		(368)
Cancellation of treasury stock	(11)		(344)		355		—		—		—		—		—
Distributions to noncontrolling interests	—		—		—		—		—		—		(11)		(11)

Balance at September 30, 2019	$	221	$	3,000	$	(68)	$	5,552	$	(3,850)	$	4,855	$	31	$	4,886

_____________

(1)Refer to Note 19 - Other Comprehensive Income (Loss) for the components of AOCL.

(2)Cash dividends declared on common stock for the three and nine months ended September 30, 2020 and 2019 were $0.25 per share and $0.75 per share, respectively.

(3)Cash dividends declared on preferred stock for the three and nine months ended September 30, 2020 and 2019 were $20.00 per share and $60.00 per share, respectively.

Treasury Stock

The following is a summary of the purchases of common stock during 2020:


	Shares	Amount
Balance at December 31, 2019	2,031	$	76
Purchases(1)	8,007	150
Cancellations	(2,031)	(76)
Balance at September 30, 2020	8,007	$	150

_____________

(1)Includes associated fees.

Shareholders' Equity of Xerox

The shareholders' equity information presented below reflects the consolidated activity of Xerox.


	Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL(1)		Xerox Shareholder's Equity		Non-controlling Interests		Total Equity
Balance at June 30, 2020	$	—	$	3,515	$	—	$	5,925	$	(3,681)	$	5,759	$	4	$	5,763
Comprehensive income, net	—		—		—		101		88		189		—		189


Dividends declared to parent	—		—		—		(55)		—		(55)		—		(55)
Capital contributions from parent(2)	—		1,494		—		—		—		1,494		—		1,494
Transfers to parent	—		(150)		—		—		—		(150)		—		(150)








Balance at September 30, 2020	$	—	$	4,859	$	—	$	5,971	$	(3,593)	$	7,237	$	4	$	7,241


	Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL(1)		Xerox Shareholders’ Equity		Non- controlling Interests		Total Equity
Balance at June 30, 2019	$	225	$	3,124	$	(131)	$	5,391	$	(3,647)	$	4,962	$	30	$	4,992

Comprehensive income (loss), net	—		—		—		221		(203)		18		2		20



Dividends declared to parent	—		—		—		(58)				(58)		—		(58)
Stock option and incentive plans, net	—		(2)		—		—		—		(2)		—		(2)


Cancellation of treasury stock	(4)		(127)		131		—		—		—		—		—
Distributions to noncontrolling interests	—		—		—		—		—		—		(1)		(1)
Reorganization	(221)		446		—		—		—		225		—		225
Balance at September 30, 2019	$	—	$	3,441	$	—	$	5,554	$	(3,850)	$	5,145	$	31	$	5,176


	Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL(1)		Xerox Shareholder's Equity		Non-controlling Interests		Total Equity
Balance at December 31, 2019	$	—	$	3,266	$	—	$	6,247	$	(3,646)	$	5,867	$	7	$	5,874

Comprehensive income, net	—		—		—		126		53		179		—		179


Dividends declared to parent	—		—		—		(402)		—		(402)		—		(402)
Capital contributions from parent(2)	—		1,494				—		—		1,494		—		1,494
Transfers from parent	—		99		—		—		—		99		—		99






Distributions to noncontrolling interests	—		—		—		—		—		—		(3)		(3)


Balance at September 30, 2020	$	—	$	4,859	$	—	$	5,971	$	(3,593)	$	7,237	$	4	$	7,241


	Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL(1)		Xerox Shareholders’ Equity		Non- controlling Interests		Total Equity
Balance at December 31, 2018	$	232	$	3,321	$	(55)	$	5,072	$	(3,565)	$	5,005	$	34	$	5,039
Cumulative effect of change in accounting principle	—		—		—		127		(127)		—		—		—
Comprehensive income (loss), net	—		—		—		535		(158)		377		8		385
Cash dividends declared - common	—		—		—		(115)		—		(115)		—		(115)
Cash dividends declared - preferred	—		—		—		(7)		—		(7)		—		(7)
Dividends declared to parent	—		—		—		(58)		—		(58)		—		(58)


Stock option and incentive plans, net	—		18		—		—		—		18		—		18

Payments to acquire treasury stock, including fees	—		—		(300)		—		—		(300)		—		(300)
Cancellation of treasury stock	(11)		(344)		355		—		—		—		—		—
Distributions to noncontrolling interests	—		—		—		—		—		—		(11)		(11)
Reorganization	(221)		446		—		—		—		225		—		225
Balance at September 30, 2019	$	—	$	3,441	$	—	$	5,554	$	(3,850)	$	5,145	$	31	$	5,176

_____________

(1)Refer to Note 19 - Other Comprehensive Income (Loss) for the components of AOCL.

(2)Primarily represents the contribution of aggregate net debt proceeds received from Senior Note offerings in the third quarter 2020 from Xerox Holdings to Xerox Corporation. Refer to Note 13 - Debt for additional information regarding the Senior Note offerings.

Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2020

Equity [Abstract]

Other Comprehensive Income (Loss)

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


	Three Months Ended September 30,								Nine Months Ended September 30,
	2020				2019				2020				2019
	Pre-tax		Net of Tax		Pre-tax		Net of Tax		Pre-tax		Net of Tax		Pre-tax		Net of Tax
Translation adjustments gains (losses)	$	176	$	179	$	(153)	$	(155)	$	(2)	$	7	$	(121)	$	(122)
Unrealized gains (losses)
Changes in fair value of cash flow hedges gains	1		1		4		4		5		4		10		8
Changes in cash flow hedges reclassed to earnings(1)	—		—		(3)		(3)		(1)		—		(6)		(5)

Net Unrealized gains	1		1		1		1		4		4		4		3

Defined benefit plans (losses) gains
Net actuarial/prior service (losses) gains	(77)		(58)		(126)		(95)		9		6		(162)		(122)
Prior service amortization(2)	(20)		(15)		(19)		(14)		(59)		(44)		(59)		(44)
Actuarial loss amortization/settlement(2)	31		23		34		26		104		79		123		93
Fuji Xerox changes in defined benefit plans, net(3)	—		—		(3)		(3)		—		—		(1)		(1)
Other (losses) gains(4)	(42)		(42)		38		38		1		1		36		36
Changes in defined benefit plans (losses) gains	(108)		(92)		(76)		(48)		55		42		(63)		(38)

Other Comprehensive Income (Loss)	69		88		(228)		(202)		57		53		(180)		(157)
Less: Other comprehensive income attributable to noncontrolling interests	—		—		1		1		—		—		1		1
Other Comprehensive Income (Loss) Attributable to Xerox Holdings/Xerox	$	69	$	88	$	(229)	$	(203)	$	57	$	53	$	(181)	$	(158)

____________

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

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

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

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

Accumulated Other Comprehensive Loss (AOCL)

AOCL is comprised of the following:


	September 30, 2020		December 31, 2019
Cumulative translation adjustments	$	(1,954)	$	(1,961)
Other unrealized gains (losses), net	2		(2)
Benefit plans net actuarial losses and prior service credits	(1,641)		(1,683)
Total Accumulated other comprehensive loss attributable to Xerox Holdings/Xerox	$	(3,593)	$	(3,646)

Earnings per Share

9 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Earnings per Share

(shares in thousands)

The following table sets forth the computation of basic and diluted earnings per share of common stock of Xerox Holdings:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Basic Earnings per Share
Net Income from Continuing Operations Attributable to Xerox Holdings	$	90	$	157	$	115	$	382
Accrued dividends on preferred stock	(4)		(4)		(11)		(11)
Adjusted Net income from continuing operations available to common shareholders	86		153		104		371
Income from discontinued operations attributable to Xerox Holdings, net of tax	—		64		—		153
Adjusted Net income available to common shareholders	$	86	$	217	$	104	$	524

Weighted average common shares outstanding	211,169		220,269		212,163		224,257

Basic Earnings per Share:
Continuing operations	$	0.41	$	0.70	$	0.49	$	1.66
Discontinued operations	—		0.29		—		0.68
Basic Earnings per Share	$	0.41	$	0.99	$	0.49	$	2.34

Diluted Earnings per Share
Net Income from Continuing Operations Attributable to Xerox Holdings	$	90	$	157	$	115	$	382
Accrued dividends on preferred stock	(4)		—		(11)		—
Adjusted Net income from continuing operations available to common shareholders	86		157		104		382
Income from discontinued operations attributable to Xerox Holdings, net of tax	—		64		—		153
Adjusted Net income available to common shareholders	$	86	$	221	$	104	$	535

Weighted average common shares outstanding	211,169		220,269		212,163		224,257
Common shares issuable with respect to:
Stock options	—		42		20		37
Restricted stock and performance shares	1,538		4,014		2,600		4,429
Convertible preferred stock	—		6,742		—		6,742

Adjusted Weighted average common shares outstanding	212,707		231,067		214,783		235,465

Diluted Earnings per Share:
Continuing operations	$	0.41	$	0.68	$	0.49	$	1.62
Discontinued operations	—		0.28		—		0.65
Diluted Earnings per Share	$	0.41	$	0.96	$	0.49	$	2.27

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:
Stock options	808		841		788		847
Restricted stock and performance shares	3,118		2,358		2,055		1,944
Convertible preferred stock	6,742		—		6,742		—
Total Anti-Dilutive Securities	10,668		3,199		9,585		2,791

Dividends per Common Share	$	0.25	$	0.25	$	0.75	$	0.75

Contingencies and Litigation

9 Months Ended

Sep. 30, 2020

Commitments and Contingencies Disclosure [Abstract]

Contingencies and Litigation

Legal Matters

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.

Brazil Contingencies

Our Brazilian operations have received or been the subject of numerous governmental assessments related to indirect and other taxes. The tax matters 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. Below is a summary of our Brazilian tax contingencies:


	September 30, 2020		December 31, 2019
Tax contingency - unreserved	$	325	$	442
Escrow cash deposits	36		51
Surety bonds	97		135
Letters of credit	69		91
Liens on Brazilian assets	—		—

The decrease in the unreserved portion of the tax contingency, inclusive of any related interest, was primarily related to currency. With respect to the unreserved tax contingency, 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 well as, additional surety bonds and letters of credit, which include associated indexation. Generally, any escrowed amounts would be refundable and any liens on assets would be removed to the extent the matters are resolved in our favor. We are also involved in certain disputes with contract and former employees. Exposures related to labor matters are not material to the financial statements as of September 30, 2020 and December 31, 2019. We routinely assess all these matters as to the 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

Pending Litigation Relating to the Fuji Transaction:

1.Ribbe v. Jacobson, et al.:

On April 11, 2019, Carmen Ribbe filed a putative derivative and class action stockholder complaint in the Supreme Court of the State of New York for New York County, naming as defendants Xerox, current Board members Joseph J. Echevarria, Cheryl Gordon Krongard, Keith Cozza, Giovanni G. Visentin, Jonathan Christodoro, Nicholas Graziano, and A. Scott Letier, and former Board members Jeffrey Jacobson, William Curt Hunter, Robert J. Keegan, Charles Prince, Ann N. Reese, Stephen H. Rusckowski, Gregory Q. Brown, and Sara Martinez Tucker. Plaintiff previously filed a putative shareholder derivative lawsuit on May 24, 2018 against certain of these defendants, as well as others, in the same court; that lawsuit was dismissed without prejudice on December 6, 2018. The new complaint included putative derivative claims on behalf of Xerox for breach of fiduciary duty against the then members of the Xerox Board who approved Xerox’s entry into agreements to settle shareholder actions filed in 2018 in the same court against Xerox, its then directors, and FUJIFILM Holdings Corporation (“Fujifilm”) in connection with a proposed transaction announced in January 2018 to combine Xerox and Fuji Xerox (the “Fuji Transaction”), including a consolidated putative class action, In re Xerox Corporation Consolidated Shareholder

Litigation (“XCCSL”), and actions filed by Darwin Deason, Deason v. Fujifilm Holdings Corp., et al. and Deason v. Xerox Corporation, et al., against the same defendants as well as, in the first Deason action, former Xerox Chief Executive Officer Ursula M. Burns (the "Fuji Transaction Shareholder Lawsuits"). Plaintiff alleged that the settlements ceded control of the Board and the Company to Darwin Deason and Carl C. Icahn without a vote by, or compensation to, other Xerox stockholders; improperly provided certain benefits and releases to the resigning and continuing directors; and subjected Xerox to potential breach of contract damages in an action by Fuji relating to Xerox’s termination of the proposed Fuji Transaction. Plaintiff also alleged that the current Board members breached their fiduciary duties by allegedly rejecting plaintiff’s January 14, 2019 shareholder demand on the Board to remedy harms arising from entry into the Deason and XCCSL settlements. The new complaint further included direct claims for breach of fiduciary duty on behalf of a putative class of current Xerox stockholders other than Mr. Deason, Mr. Icahn, and their affiliated entities (the “Ribbe Class”) against the defendants for causing Xerox to enter into the Deason and XCCSL settlements, which plaintiff alleged perpetuated control of Xerox by Mr. Icahn and Mr. Deason and denied the voting franchise of Xerox shareholders. Among other things, plaintiff sought damages in an unspecified amount for the alleged fiduciary breaches in favor of Xerox against defendants jointly and severally; rescission or reformation of the Deason and XCCSL settlements; restitution of funds paid to the resigning directors under the Deason settlement; an injunction against defendants’ engaging in the alleged wrongful practices and equitable relief affording the putative Ribbe Class the ability to determine the composition of the Board; costs and attorneys’ fees; and other further relief as the Court may deem proper.

Defendants accepted service of the complaint as of May 16, 2019. On June 4, 2019, the Court entered an order setting a briefing schedule for defendants’ motions to dismiss the complaint. On July 12, 2019, plaintiff filed a motion to preclude defendants from referencing in their motions to dismiss the formation of, or work by, the committee of the Board established to investigate plaintiff’s shareholder demand. On July 18, 2019, the Court denied plaintiff’s motion and adjourned sine die the deadline by which defendants must file any motions to dismiss the complaint.

On January 6, 2020, plaintiff filed his first amended complaint (“FAC”). The FAC includes many of plaintiff’s original allegations regarding the 2018 shareholder litigation and settlements, as well as additional allegations, including, among others, that the members of the Special Committee of the Board that investigated plaintiff’s demand lacked independence and wrongfully refused to pursue the claims in the demand; allegations that an agreement announced in November 2019 for, among other things, the sale by Xerox of its interest in Fuji Xerox to Fujifilm and dismissal of Fujifilm’s breach of contract lawsuit against Xerox (the “FX Sale Transaction”), was unfavorable to Xerox; and allegations about a potential acquisition by Xerox of HP similar to those in the Miami Firefighters derivative action described below. In addition to the claims in the April 11, 2019 complaint, the FAC adds as defendants Carl C. Icahn, Icahn Capital LP, and High River Limited Partnership (the “Icahn defendants”) and asserts claims against those defendants and the Board similar to those in Miami Firefighters relating to the Icahn defendants’ purchases of HP stock allegedly with knowledge of material nonpublic information concerning Xerox’s potential acquisition of HP. In addition to the relief sought in Ribbe’s prior complaint, the FAC seeks relief similar to that sought in Miami Firefighters relating to the Icahn defendants’ alleged purchases of HP stock.

On January 21, 2020, plaintiff in the Miami Firefighters action filed a motion seeking to intervene in Ribbe and to have stayed, or alternatively, severed and consolidated with the Miami Firefighters action, any claims first filed in Miami Firefighters and later asserted by Ribbe. At a conference held on February 25, 2020, the Court denied the motion to intervene without prejudice. On March 6, 2020, plaintiff in the Miami Firefighters action renewed its motion. On July 23, 2020, after hearing oral argument, the Court issued an order denying the motion and setting certain case deadlines.

Discovery has commenced. On August 7, 2020, Xerox, the director defendants, and the Icahn defendants filed separate motions to dismiss. On October 1, 2020, plaintiff filed a cross-motion seeking, among other relief, joinder of Xerox Holdings Corporation as a nominal defendant. Briefing on the motions to dismiss and plaintiff’s cross-motion was completed on October 16, 2020.

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.

2.Miami Firefighters’ Relief & Pension Fund v. Icahn, et al.:

On December 13, 2019, alleged shareholder Miami Firefighters’ Relief & Pension Fund (“Miami Firefighters”) filed a purported derivative complaint in New York State Supreme Court, New York County on behalf of Xerox Holdings Corporation ("Xerox Holdings") (as nominal defendant) against Carl Icahn and his affiliated entities High River Limited Partnership and Icahn Capital LP (the "Icahn defendants"), Xerox Holdings, and all current Xerox Holdings directors (the "Directors"). Plaintiff made no demand on the Board before bringing the action, but instead alleges that doing so would be futile because the Directors lack independence due to alleged direct or indirect relationships with Icahn. Among other things, the complaint alleges that Icahn controls and dominates Xerox Holdings and therefore owes a fiduciary duty of loyalty to Xerox Holdings, which he breached by acquiring HP stock at a time when he knew that Xerox Holdings was considering an offer to acquire HP or had knowledge of the "obvious merits" of such potential acquisition, and that the Icahn defendants’ holdings of HP common stock have risen in market value by approximately $128 since disclosure of the offer. The complaint includes four causes of action: breach of fiduciary duty of loyalty against the Icahn defendants; breach of contract against the Icahn defendants (for purchasing HP stock in violation of Icahn’s confidentiality agreement with Xerox Holdings); unjust enrichment against the Icahn defendants; and breach of fiduciary duty of loyalty against the Directors (for any consent to the Icahn defendants’ purchases of HP common stock while Xerox Holdings was considering acquiring HP). The complaint seeks a judgment of breach of fiduciary duties against the Icahn defendants and the Directors; a declaration that Icahn breached his confidentiality agreement with Xerox Holdings; a constructive trust on Icahn Capital and High River's investments in HP securities; disgorgement to Xerox Holdings of profits Icahn Capital and High River earned from trading in HP stock; payment of unspecified damages by the Directors for breaching fiduciary duties; and attorneys' fees, costs, and other relief the Court deems just and proper. On January 15, 2020, the Court entered an order granting plaintiff’s unopposed motion to consolidate with Miami Firefighters a similar action filed on December 26, 2019 by alleged shareholder Steven J. Reynolds against the same parties in the same court, and designating Miami Firefighters’ counsel as lead counsel in the consolidated action. On January 21, 2020, plaintiff filed a motion seeking to intervene in Ribbe v. Jacobson, et al., described above, and to have stayed, or alternatively, severed and consolidated with this action, any claims first filed in this action and later asserted by Ribbe. At a conference held on February 25, 2020, the Court denied the motion to intervene without prejudice. On March 6, 2020, plaintiff in the Miami Firefighters action renewed its motion. On July 23, 2020, after hearing oral argument, the Court issued an order denying the motion and setting certain case deadlines.

Discovery has commenced. On August 10, 2020, the Xerox defendants and the Icahn defendants filed separate motions to dismiss. Briefing on the motions was completed on October 21, 2020.

Xerox Holdings 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

We have issued or provided approximately $273 of guarantees as of September 30, 2020 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 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.

Subsequent Event	9 Months Ended
Subsequent Event	Sep. 30, 2020
Subsequent Events [Abstract]
Subsequent Event	Subsequent EventIn October 2020, we completed the early redemption of $750 of the $1,062 of 4.50% Senior Notes due May 2021, for $769 in cash consideration, which included a redemption premium of $19. The early redemption resulted in a net loss $18 (which included the write-off of debt carrying value adjustments) that was recorded in the fourth quarter 2020. After completion of the early redemption, approximately $312 of the 4.50% Senior Notes due May 2021 remain outstanding.

Recent Accounting Pronouncements (Policies)	9 Months Ended
Recent Accounting Pronouncements (Policies)	Sep. 30, 2020
Accounting Standards Update and Change in Accounting Principle [Abstract]
Accounting Standards Updates	Accounting Standard Updates to be Adopted: Debt In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40). This update simplifies the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments and convertible preferred stock. This update also amends the guidance for the derivatives scope exception for contracts in an entity's own equity to reduce form-over-substance-based accounting conclusions and requires the application of the if-converted method for calculating diluted earnings per share. This update is effective for our fiscal year beginning January 1, 2022. We are currently evaluating the impact of the adoption of this standard on the Company’s consolidated financial statements and related disclosures. Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848), which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued. The amendments are effective for all entities as of March 12, 2020 through December 31, 2022. There has been no impact to date as a result of ASU 2020-04, however we continue to evaluate potential future impacts that may result from the discontinuation of LIBOR or other reference rates as well as the accounting provided in this update on our financial condition, results of operations, and cash flows. Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which was intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. This update is effective for our fiscal year beginning January 1, 2021. Although we continue to evaluate the effects of this update on our Consolidated Financial Statements, at this stage we do not expect the adoption to have a material impact on our results of operations, financial position or disclosures. Accounting Standard Updates Adopted in 2020: Leases In April 2020, the FASB staff issued a question and answer (Q&A) document on the application of lease accounting guidance related to lease concessions provided as a result of the economic disruption caused by the COVID-19 pandemic (Topic 842 Q&A). Topic 842 Q&A provides interpretive guidance allowing companies the option to account for lease concessions related to the COVID-19 pandemic consistent with how those concessions would be accounted for under ASU 2016-02, Leases (Topic 842), as though enforceable rights and obligations for those concessions existed at the beginning of the contract (regardless of whether those enforceable rights and obligations for the concessions explicitly exist in the contract). This interpretive guidance was issued in order to reduce the costs and complexities of applying lease modification accounting under Topic 842 to leases impacted by the effects of the COVID-19 pandemic. This election is available for concessions related to the effects of the COVID-19 pandemic that do not result in a substantial increase in the rights of the lessor or the obligations of the lessee. We have elected to apply the interpretive guidance provided in Topic 842 Q&A to rent concessions related to the COVID-19 pandemic provided as a Lessor to our customers and as received as a Lessee. Rent deferrals provided as a Lessor were primarily offered to customers with sales type lease receivables. We elected to account for the deferrals in the timing of lease payments as if there were no changes in the lease contracts. Under this approach, assuming that collectibility of future lease payments is still probable, the classification of the leases is not updated and we retain the balance of the deferral as a receivable and will settle that receivable at the revised payment date or dates. As of September 30, 2020, we approved payment deferrals of up to three months of approximately $33 or approximately 1% of our total finance receivable portfolio. The outstanding principal balance of receivables for customers with an approved payment deferral was approximately $337. Rent abatements to the extent provided were not material and were accounted for as write-offs as part of our normal bad debt reserve assessment. With respect to rent deferrals and abatements received as a Lessee, we elected to account for the deferrals and abatements as a resolution of a contingency within the lease. Under this approach, we follow the resolution of a contingency model in ASC 842 without reclassifying the lease or updating the discount rate. We remeasure the remaining consideration in the contract, reallocate it to the lease and non-lease components as applicable, and remeasure the lease liability with an adjustment to the right-of-use asset for the same amount. If the total lease payments remain exactly the same, the lease cost remains unchanged. The impact of this election was not material to our financial condition, results of operations or cash flows, as no rent concessions provided to Xerox in the second or third quarters of 2020 were material, individually or in the aggregate. Government Grants/Assistance As a result of the significant increase in governmental assistance during 2020, we updated our significant accounting policies as summarized in Note 1 - Basis of Presentation and Summary of Significant Accounting Policies to the Consolidated Financial Statements included on Form 10-K for the year ended December 31, 2019, as follows for the accounting associated with government assistance. Government grants related to income are recognized as a reduction of related expenses in the Condensed Consolidated Statements of Income when there is a reasonable assurance that the entity will comply with the conditions attached to the grant and that the grants will be received. The timing and pattern of recognition of government grants is made on a systematic basis over the periods in which the Company recognizes the related expenses or losses that the grants are intended to compensate. Financial Instruments - Credit Losses On January 1, 2020, we adopted ASU 2016-13, Financial Instruments Credit Losses - Measurement of Credit Losses on Financial Instruments. This update was issued by the FASB in June 2016, with additional updates and amendments being issued in 2018, 2019 and 2020 and requires measurement and recognition of expected credit losses for financial assets on an expected loss model rather than an incurred loss model. The update impacted financial assets including net investment in leases that are not accounted for at fair value through Net Income. The adoption of ASU 2016-13 primarily impacted the estimation of our Allowance for doubtful accounts for Accounts Receivable and Finance Receivables. The impact recorded on our initial adoption of ASU 2016-13 was not material as our previous methodology for assessing the adequacy of our Allowance for doubtful accounts for Finance Receivables, the larger component of our receivable reserves, incorporated an expected loss model and the methodology for both allowances included an assessment of current economic conditions. However, as previously disclosed, the future impact from this update is highly dependent on future economic conditions. Refer to Note 8 - Accounts Receivable, Net and Note 9 - Finance Receivable, Net for additional discussion regarding the impacts from the adoption of this update during the first quarter 2020. Intangibles - Internal-Use Software On January 1, 2020, we adopted ASU 2018-15, Intangibles - Goodwill and Other - Internal Use Software (Subtopic 350-40), Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. This update was issued by the FASB in August 2018 and aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The update provides criteria for determining which implementation costs to capitalize as an asset related to the service contract and which costs to expense. The capitalized implementation costs are required to be expensed over the term of the hosting arrangement. The update also clarifies the presentation requirements for reporting such costs in the entity’s financial statements. The adoption of ASU 2018-15 did not have a material impact on our financial condition, results of operations or cash flows as we had previously capitalized these implementation costs and such amounts were not material. Other Updates In 2020 and 2019, the FASB also issued the following ASUs, which impact the Company but did not have or 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: •Investments: ASU 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323) and Derivatives and Hedging (Topic 815). This update is effective for our fiscal year beginning January 1, 2021. •Compensation - Stock Compensation and Revenue from Contracts with Customers: ASU 2019-08, (Topic 718) and (Topic 606) Codification Improvements - Share-Based Consideration Payable to a Customer. This update was effective for our fiscal year beginning January 1, 2020. •Collaborative Arrangements: ASU 2018-18, (Topic 808) Clarifying the Interaction between Topic 808 and Topic 606. This update was effective for our fiscal year beginning January 1, 2020. •Fair Value Measurement: ASU 2018-13, (Topic 820) Disclosure Framework. This update was effective for our fiscal year beginning January 1, 2020.
Operating Leases	Operating LeasesWe have operating leases for real estate and vehicles in our domestic and international operations and for certain equipment in our domestic operations. Additionally, we have identified embedded operating leases within certain supply chain contracts for warehouses, primarily within our domestic operations. Our leases have remaining terms of up to twelve years and a variety of renewal and/or termination options.

Revenue (Tables)

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenues Disaggregated by Primary Geographic Markets, Major Products Lines, and Sales Channels

Revenues disaggregated by primary geographic markets, major product lines, and sales channels are as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Primary geographical markets(1):
United States	$	1,062	$	1,343	$	3,101	$	3,955
Europe	480		521		1,317		1,705
Canada	94		123		278		377
Other	131		192		396		585
Total Revenues	$	1,767	$	2,179	$	5,092	$	6,622

Major product and services lines:
Equipment	$	419	$	494	$	1,054	$	1,446
Supplies, paper and other sales	232		290		622		862
Maintenance agreements(2)	443		567		1,338		1,774
Service arrangements(3)	486		611		1,512		1,883
Rental and other	132		157		396		473
Financing	55		60		170		184

Total Revenues	$	1,767	$	2,179	$	5,092	$	6,622

Sales channels:

Direct equipment lease(4)	$	151	$	200	$	388	$	484
Distributors & resellers(5)	245		301		604		949
Customer direct	255		283		684		875
Total Sales	$	651	$	784	$	1,676	$	2,308

_____________

(1)Geographic area data is based upon the location of the subsidiary reporting the revenue.

(2)Includes revenues from maintenance agreements on sold equipment as well as revenues associated with service agreements sold through our channel partners as Xerox Partner Print Services (XPPS).

(3)Primarily includes revenues from our Managed Services offerings. Also includes revenues from embedded operating leases, which were not significant.

(4)Primarily reflects direct sales through bundled lease arrangements.

(5)Primarily reflects sales through our two-tier distribution channels.

Incremental Direct Costs of Obtaining a Contract

Incremental direct costs are as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Incremental direct costs of obtaining a contract	$	15	$	20	$	43	$	56
Amortization of incremental direct costs	19		23		60		66

Lessor (Tables)

9 Months Ended

Sep. 30, 2020

Components of lease income

The components of lease income are as follows:


	Location in	Three Months Ended September 30,				Nine Months Ended September 30,
	Statements of Income	2020		2019		2020		2019
Revenue from sales type leases	Sales	$	151	$	200	$	388	$	484


Interest income on lease receivables	Financing	55		60		170		184


Lease income - operating leases	Services, maintenance and rentals	77		99		242		303
Variable lease income	Services, maintenance and rentals	15		25		51		80
Total Lease income		$	298	$	384	$	851	$	1,051

Components of lease income

The components of lease income are as follows:


	Location in	Three Months Ended September 30,				Nine Months Ended September 30,
	Statements of Income	2020		2019		2020		2019
Revenue from sales type leases	Sales	$	151	$	200	$	388	$	484


Interest income on lease receivables	Financing	55		60		170		184


Lease income - operating leases	Services, maintenance and rentals	77		99		242		303
Variable lease income	Services, maintenance and rentals	15		25		51		80
Total Lease income		$	298	$	384	$	851	$	1,051

Divestitures (Tables)

9 Months Ended

Sep. 30, 2020

Discontinued Operations and Disposal Groups [Abstract]

Summarized Financial Information - Discontinued operations

Summarized financial information for our Discontinued operations is as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Revenue	$	—	$	21	$	—	$	73

Income from operations(1)	$	—	$	64	$	—	$	159
Gain on disposal	—		—		—		—
Income before income taxes	—		64		—		159
Income tax expense	—		—		—		2
Income from discontinued operations, net of tax	—		64		—		157
Income from discontinued operations attributable to noncontrolling interests, net of tax	—		—		—		4
Income from discontinued operations, attributable to Xerox Holdings, net of tax	$	—	$	64	$	—	$	153

_____________

(1)Includes Equity in net income for FX of $57 and $132 for the three and nine months ended September 30, 2019, respectively.

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.

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=109226691&loc=SL51724579-110230

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109222650&loc=d3e1474-107760

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5D
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721677-107760

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109222160&loc=SL51721533-107759

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721659-107760

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721665-107760

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109226691&loc=d3e2941-110230

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5C
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721675-107760

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721683-107760

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=109222650&loc=d3e1361-107760

Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5A
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721671-107760

Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5B
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721673-107760

Reference 13: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721663-107760

Supplemental Financial Information [Abstract]

Supplementary Financial Information (Tables)

9 Months Ended

Sep. 30, 2020

Cash, Cash Equivalents and Restricted Cash

Cash, cash equivalents and restricted cash amounts were as follows:


	September 30, 2020		December 31, 2019
Cash and cash equivalents	$	3,242	$	2,740
Restricted cash
Litigation deposits in Brazil	39		55

Other restricted cash	16		—
Total Restricted cash	55		55
Cash, cash equivalents and restricted cash	$	3,297	$	2,795

Cash, Cash Equivalents and Restricted Cash

Cash, cash equivalents and restricted cash amounts were as follows:


	September 30, 2020		December 31, 2019
Cash and cash equivalents	$	3,242	$	2,740
Restricted cash
Litigation deposits in Brazil	39		55

Other restricted cash	16		—
Total Restricted cash	55		55
Cash, cash equivalents and restricted cash	$	3,297	$	2,795

Restricted Cash Balance Sheet Location

Restricted cash was reported in the Condensed Consolidated Balance Sheets as follows:


	September 30, 2020		December 31, 2019
Other current assets	$	16	$	—
Other long-term assets	39		55
Total Restricted cash	$	55	$	55

Supplemental Cash Flow Information

Summarized cash flow information is as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Provision for receivables	$	17	$	13	$	104	$	40
Provision for inventory	6		3		20		18
Provision for product warranty	3		3		6		10
Depreciation of buildings and equipment	21		24		64		77
Depreciation and obsolescence of equipment on operating leases	45		56		142		172
Amortization of internal use software	11		15		32		48

Amortization of acquired intangible assets	13		9		34		35
Amortization of customer contract costs(1)	20		24		63		70
Cost of additions to land, buildings and equipment	9		11		36		30
Cost of additions to internal use software	9		6		24		18
Common stock dividends - Xerox Holdings	57		57		165		172
Preferred stock dividends - Xerox Holdings	4		4		11		11



Repurchases related to stock-based compensation - Xerox Holdings	9		10		19		20

_____________

Accounts Receivable, Net (Tables)

9 Months Ended

Sep. 30, 2020

Schedule of accounts receivable, net

Accounts receivable, net were as follows:


	September 30, 2020		December 31, 2019
Invoiced	$	731	$	980
Accrued(1)	227		311
Allowance for doubtful accounts	(63)		(55)
Accounts receivable, net	$	895	$	1,236

_____________

(1)Accrued receivables include amounts to be invoiced in the subsequent quarter for current services provided.

The allowance for doubtful accounts was as follows:



Balance at December 31, 2019	$	55
Provision	8
Charge-offs	(2)
Recoveries and other(1)	(1)
Balance at March 31, 2020	$	60
Provision	9
Charge-offs	(8)
Recoveries and other(1)	(1)
Balance at June 30, 2020	$	60
Provision	7
Charge-offs	(6)
Recoveries and other(1)	2
Balance at September 30, 2020	$	63

_____________

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

Schedule of accounts receivables sales

Accounts receivable sales activity was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Accounts receivable sales(1)	$	115	$	67	$	182	$	265

_____________

Finance Receivables, Net (Tables)

9 Months Ended

Sep. 30, 2020

Allowance for Credit Losses on Financing Receivables

Finance Receivables

Finance receivables, net were as follows:


	September 30, 2020		December 31, 2019
Gross receivables	$	3,600	$	3,865
Unearned income	(382)		(425)
Subtotal	3,218		3,440
Residual values	—		—
Allowance for doubtful accounts	(142)		(89)
Finance receivables, net	3,076		3,351
Less: Billed portion of finance receivables, net	111		111
Less: Current portion of finance receivables not billed, net	1,066		1,158
Finance receivables due after one year, net	$	1,899	$	2,082

The allowance for doubtful accounts as well as the related investment in finance receivables were as follows:


	United States		Canada(1)		EMEA(1)(2)		Total
Balance at December 31, 2019	$	59	$	11	$	19	$	89
Provision	35		6		25		66
Charge-offs	(3)		(1)		(4)		(8)
Recoveries and other(3)	—		(1)		—		(1)
Balance at March 31, 2020	$	91	$	15	$	40	$	146
Provision	3		1		—		4
Charge-offs	(5)		(1)		(2)		(8)
Recoveries and other(3)	—		1		—		1
Balance at June 30, 2020	$	89	$	16	$	38	$	143
Provision	6		—		3		9
Charge-offs	(6)		(2)		(5)		(13)
Recoveries and other(3)	—		1		2		3

Balance at September 30, 2020	$	89	$	15	$	38	$	142
Finance receivables as of September 30, 2020 collectively evaluated for impairment (4)	$	1,819	$	284	$	1,115	$	3,218

Balance at December 31, 2018	$	53	$	12	$	27	$	92
Provision	4		1		4		9
Charge-offs	(4)		(1)		(3)		(8)
Recoveries and other(3)	—		—		—		—
Balance at March 31, 2019	$	53	$	12	$	28	$	93
Provision	4		1		3		8
Charge-offs	(5)		(3)		(3)		(11)
Recoveries and other(3)	1		2		—		3
Balance at June 30, 2019	$	53	$	12	$	28	$	93
Provision	6		—		2		8
Charge-offs	(5)		(1)		(3)		(9)
Recoveries and other(3)	1		—		—		1

Balance at September 30, 2019	$	55	$	11	$	27	$	93
Finance receivables as of September 30, 2019 collectively evaluated for impairment(4)	$	1,900	$	324	$	1,157	$	3,381

_____________

(1)Prior year amounts have been recasted to include the Other geographic region, which was previously disclosed as a separate grouping, conforming to the current year's presentation.

(2)Includes developing market countries.

(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 $142 and $93 at September 30, 2020 and 2019, respectively.

Financing Receivable Credit Quality Indicators

Details about our finance receivables portfolio based on geography, origination year and credit quality indicators are as follows:


	September 30, 2020														December 31, 2019
	2020		2019		2018		2017		2016		Prior		Total Finance Receivables		Total Finance Receivables
United States (Direct):
Low Credit Risk	$	117	$	160	$	144	$	87	$	48	$	7	$	563	$	640
Average Credit Risk	42		103		60		31		12		3		251		331
High Credit Risk	65		47		29		16		6		3		166		132
Total	$	224	$	310	$	233	$	134	$	66	$	13	$	980	$	1,103

United States (Indirect):
Low Credit Risk	$	154	$	180	$	103	$	45	$	14	$	1	$	497	$	258
Average Credit Risk	86		110		73		35		9		1		314		445
High Credit Risk	13		6		5		3		1		—		28		116
Total	$	253	$	296	$	181	$	83	$	24	$	2	$	839	$	819

Canada(1)
Low Credit Risk	$	24	$	34	$	26	$	11	$	8	$	2	$	105	$	163
Average Credit Risk	32		40		29		20		8		1		130		97
High Credit Risk	13		11		10		12		3		—		49		66
Total	$	69	$	85	$	65	$	43	$	19	$	3	$	284	$	326

EMEA(1)(2)
Low Credit Risk	$	128	$	189	$	145	$	73	$	29	$	6	$	570	$	655
Average Credit Risk	108		164		117		60		22		4		475		479
High Credit Risk	16		22		16		11		4		1		70		58
Total	$	252	$	375	$	278	$	144	$	55	$	11	$	1,115	$	1,192







Total Finance Receivables
Low Credit Risk	$	423	$	563	$	418	$	216	$	99	$	16	$	1,735	$	1,716
Average Credit Risk	268		417		279		146		51		9		1,170		1,352
High Credit Risk	107		86		60		42		14		4		313		372
Total	$	798	$	1,066	$	757	$	404	$	164	$	29	$	3,218	$	3,440

_____________

(1)Prior year amounts have been recasted to include the Other geographic region, which was previously disclosed as a separate grouping, conforming to the current year's presentation.

(2)Includes developing market countries.

Finance Receivables Aging

The aging of our billed finance receivables is as follows:


	September 30, 2020
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Direct	$	35	$	9	$	11	$	55	$	925	$	980	$	79
Indirect	23		6		3		32		807		839		—






Total United States	58		15		14		87		1,732		1,819		79
Canada(1)	7		2		1		10		274		284		19





EMEA(1)	12		3		3		18		1,097		1,115		37

Total	$	77	$	20	$	18	$	115	$	3,103	$	3,218	$	135

	December 31, 2019
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Direct	$	37	$	11	$	8	$	56	$	1,047	$	1,103	$	57
Indirect	25		5		3		33		786		819		—






Total United States	62		16		11		89		1,833		1,922		57
Canada(1)	8		2		1		11		315		326		17





EMEA(1)(2)	12		1		2		15		1,177		1,192		32

Total	$	82	$	19	$	14	$	115	$	3,325	$	3,440	$	106

_____________

(1)Includes developing market countries.

(2)Prior year amounts have been recasted to include the Other geographic region, which was previously disclosed as a separate grouping, conforming to the current year's presentation.

Inventories and Equipment on Operating Leases, Net (Tables)

9 Months Ended

Sep. 30, 2020

Inventories and Equipment on Operating Leases, Net [Abstract]

Inventories

The following is a summary of Inventories by major category:


	September 30, 2020		December 31, 2019
Finished goods	$	823	$	576
Work-in-process	48		47
Raw materials	107		71
Total Inventories	$	978	$	694

Equipment on Operating Leases, Net

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


	September 30, 2020		December 31, 2019
Equipment on operating leases	$	1,388	$	1,443
Accumulated depreciation	(1,087)		(1,079)
Equipment on operating leases, net	$	301	$	364

Lessee (Tables)

9 Months Ended

Sep. 30, 2020

Schedule of components of lease expense

The components of lease expense are as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Operating lease expense	$	29	$	31	$	85	$	97
Short-term lease expense	5		6		15		16
Variable lease expense(1)	12		12		34		37
Sublease income	(1)		—		(2)		(1)

Total Lease expense	$	45	$	49	$	132	$	149

_____________

(1)Variable lease expense is related to our leased real estate for offices and warehouses and primarily includes labor and operational costs as well as taxes and insurance.

Schedule of operating leases assets and liabilities

Operating leases right-of-use (ROU) assets, net and operating lease liabilities were reported in the Condensed Consolidated Balance Sheets as follows:


	September 30, 2020		December 31, 2019
Other long-term assets	$	323	$	319

Accrued expenses and other current liabilities	$	86	$	87
Other long-term liabilities	264		260
Total Operating lease liabilities	$	350	$	347

Schedule of supplemental information related to operating leases

Supplemental information related to operating leases is as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020			2019
Cash paid for amounts included in the measurement of lease liabilities - Operating cash flows	$	31	$	31	$	89		$	95
ROU assets obtained in exchange for new lease liabilities (1)	$	17	$	5	$	73		$	28
Weighted-average remaining lease term					5 years			4 years
Weighted-average discount rate					5.06		%	5.63		%

_____________

(1)Includes the impact of new leases as well as remeasurements and modifications to existing leases.

Restructuring Programs (Tables)

9 Months Ended

Sep. 30, 2020

Restructuring and Related Activities [Abstract]

Restructuring Program Activity

Information related to restructuring program activity is outlined below:


	Severance and Related Costs		Other Contractual Termination Costs(2)		Asset Impairments(3)		Total
Balance at December 31, 2019	$	66	$	4	$	—	$	70
Provision	32		1		2		35
Reversals	(5)		—		(1)		(6)
Net current period charges(1)	27		1		1		29
Charges against reserve and currency	(36)		2		(1)		(35)
Balance at March 31, 2020	$	57	$	7	$	—	$	64
Provision	7		—		—		7
Reversals	(6)		(1)		(2)		(9)
Net current period charges(1)	1		(1)		(2)		(2)
Charges against reserve and currency	(14)		(1)		2		(13)
Balance at June 30, 2020	$	44	$	5	$	—	$	49
Provision	18		1		4		23
Reversals	(2)		—		(1)		(3)
Net current period charges(1)	16		1		3		20
Charges against reserve and currency	(8)		(2)		(3)		(13)
Balance at September 30, 2020	$	52	$	4	$	—	$	56

______________

(1)Represents net amount recognized within the Condensed Consolidated Statements of Income for the period shown for restructuring and asset impairment charges.

Reconciliation to the Condensed Consolidated Statements of Cash Flows

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Charges against reserve and currency	$	(13)	$	(20)	$	(61)	$	(118)

Effects of foreign currency and other non-cash items	2		3		(2)		47
Restructuring cash payments	$	(11)	$	(17)	$	(63)	$	(71)

Related Restructuring Costs

In connection with our restructuring programs, we also incurred certain related costs as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Retention related severance/bonuses(1)	$	(2)	$	11	$	9	$	31
Contractual severance costs(2)	—		3		4		41
Consulting and other costs(3)	2		5		4		24
Total	$	—	$	19	$	17	$	96

_____________

(1)Includes retention related severance and bonuses for employees expected to continue working beyond their minimum notification period before termination.

(3)Represents professional support services associated with our business transformation initiatives.

Debt (Tables)

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Schedule of Assets and Liabilities held by SPE

Below are the assets and liabilities held by the consolidated SPE, which are included in our Condensed Consolidated Balance Sheet:


	September 30, 2020
Assets held by SPE
Finance receivables, net	$	132
Finance receivables due after one year, net	182
Equipment on operating leases, net	9
Total Assets	$	323
Liabilities held by SPE
Current portion of long-term debt, net(1)	$	158
Long term debt, net(2)	157
Total Liabilities	$	315

_____________

(1)Amounts net of unamortized debt issuance costs of $1.

(2)Amounts net of unamortized debt issuance costs of $1.

Schedule of Interest Expense and Income

Interest expense and income were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Interest expense(1)	$	59	$	60	$	158	$	179
Interest income(2)	56		62		182		193

_____________

(1)Includes Cost of financing as well as non-financing interest expense that is included in Other expenses, net in the Condensed Consolidated Statements of Income.

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

Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Derivative Instruments Fair Value

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


Designation of Derivatives	Balance Sheet Location	September 30, 2020		December 31, 2019
Derivatives Designated as Hedging Instruments
Foreign exchange contracts - forwards	Other current assets	$	3	$	1
	Accrued expenses and other current liabilities	(2)		(5)


Interest rate swaps	Other long-term assets	—		1

	Net designated derivative asset (liability)	$	1	$	(3)

Derivatives NOT Designated as Hedging Instruments
Foreign exchange contracts – forwards	Other current assets	$	4	$	1
	Accrued expenses and other current liabilities	(1)		(3)
	Net undesignated derivative asset (liability)	$	3	$	(2)

Summary of Derivatives	Total Derivative assets	$	7	$	3
	Total Derivative liabilities	(3)		(8)
	Net Derivative asset (liability)	$	4	$	(5)

Summary of Gains (Losses) on Derivative Instruments

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


	Three Months Ended September 30,				Nine Months Ended September 30,
Gain (Loss) on Derivative Instruments	2020		2019		2020		2019
Fair Value Hedges - Interest Rate Contracts
Derivative (loss) gain recognized in interest expense	$	—	$	—	$	(1)	$	4
Hedged item gain (loss) recognized in interest expense	—		—		1		(4)

Cash Flow Hedges - Foreign Exchange Forward Contracts and Options
Derivative gain recognized in OCI (effective portion)	$	1	$	4	$	5	$	10
Derivative gain reclassified from AOCL to income - Cost of sales (effective portion)	—		3		1		6

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

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


Derivatives NOT Designated as Hedging Instruments	Location of Derivative Gain	Three Months Ended September 30,				Nine Months Ended September 30,
		2020		2019		2020		2019
Foreign exchange contracts – forwards	Other expense – Currency gain, net	$	2	$	2	$	19	$	3

Fair Value of Financial Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Fair value of financial assets and liabilities


	September 30, 2020		December 31, 2019
Assets
Foreign exchange contracts - forwards	$	7	$	2

Interest rate swaps	—		1

Deferred compensation investments in mutual funds	18		19
Total	$	25	$	22
Liabilities
Foreign exchange contracts - forwards	$	3	$	8



Deferred compensation plan liabilities	17		18
Total	$	20	$	26

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:


	September 30, 2020				December 31, 2019
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Cash and cash equivalents	$	3,242	$	3,242	$	2,740	$	2,740
Accounts receivable, net	895		895		1,236		1,236
Short-term debt and current portion of long-term debt	1,218		1,240		1,049		1,054
Long-term debt	3,836		3,899		3,233		3,331

Components of net periodic benefit cost and other changes in plan assets and benefit obligations

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.

+ References + Details

Employee Benefit Plans (Tables)

9 Months Ended

Sep. 30, 2020

Retirement Benefits [Abstract]

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


	Three Months Ended September 30,
	Pension Benefits
	U.S. Plans				Non-U.S. Plans				Retiree Health
Components of Net Periodic Benefit Costs:	2020		2019		2020		2019		2020		2019
Service cost	$	—	$	1	$	5	$	5	$	1	$	—
Interest cost	21		25		29		37		2		3
Expected return on plan assets	(27)		(26)		(49)		(56)		—		—
Recognized net actuarial loss (gain)	6		7		15		10		—		(1)
Amortization of prior service credit	—		—		(1)		—		(19)		(19)
Recognized settlement loss	10		18		—		—		—		—

Defined benefit plans	10		25		(1)		(4)		(16)		(17)
Defined contribution plans	(10)		6		6		5		n/a		n/a
Net Periodic Benefit Cost (Credit)	—		31		5		1		(16)		(17)

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss):
Net actuarial loss (gain)(1)	77		135		—		—		—		(9)
Amortization of net actuarial (loss) gain	(16)		(25)		(15)		(10)		—		1
Amortization of net prior service credit	—		—		1		—		19		19

Total Recognized in Other Comprehensive Income (Loss)(2)	61		110		(14)		(10)		19		11
Total Recognized in Net Periodic Benefit Cost (Credit) and Other Comprehensive Income (Loss)	$	61	$	141	$	(9)	$	(9)	$	3	$	(6)

	Nine Months Ended September 30,
	Pension Benefits
	U.S. Plans				Non-U.S. Plans				Retiree Health
Components of Net Periodic Benefit Costs:	2020		2019		2020		2019		2020		2019
Service cost	$	1	$	2	$	15	$	17	$	2	$	1
Interest cost	65		83		84		114		8		11
Expected return on plan assets	(79)		(77)		(142)		(174)		—		—
Recognized net actuarial loss (gain)	20		18		43		32		(1)		(3)
Amortization of prior service credit	(1)		(1)		(1)		(1)		(57)		(57)
Recognized settlement loss	42		76		—		—		—		—
Recognized curtailment gain	—		—		(1)		—		—		—
Defined benefit plans	48		101		(2)		(12)		(48)		(48)
Defined contribution plans	1		19		16		17		n/a		n/a
Net Periodic Benefit Cost (Credit)	49		120		14		5		(48)		(48)

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss):
Net actuarial (gain) loss(1)	(3)		171		—		—		(6)		(9)
Amortization of net actuarial (loss) gain	(62)		(94)		(43)		(32)		1		3
Amortization of prior service credit	1		1		1		1		57		57

Total Recognized in Other Comprehensive Income (Loss)(2)	(64)		78		(42)		(31)		52		51
Total Recognized in Net Periodic Benefit (Credit) Cost and Other Comprehensive Income (Loss)	$	(15)	$	198	$	(28)	$	(26)	$	4	$	3

_____________

(2)Amounts represent the pre-tax effect included within Other Comprehensive Income (Loss). Refer to Note 19 - Other Comprehensive Income (Loss) for related tax effects and the after-tax amounts.

Defined Benefit and Retiree Health Pension Plans, actual and expected cash contributions

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


	Nine Months Ended September 30,				Year Ended December 31,
	2020		2019		Estimated 2020		2019
U.S. plans	$	18	$	19	$	25	$	26
Non-U.S. plans	79		88		110		115
Total Pension	$	97	$	107	$	135	$	141

Retiree Health	$	17	$	22	$	30	$	30

Shareholders' Equity of Xerox Holdings (Tables)

9 Months Ended

Sep. 30, 2020

Stockholders' Equity Note [Abstract]

Schedule of Stockholders Equity

The shareholders' equity information presented below reflects the consolidated activity of Xerox Holdings.


	Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL(1)		Xerox Holdings Shareholders’ Equity		Non-controlling Interests		Total Equity
Balance at June 30, 2020	$	213	$	2,722	$	—	$	6,223	$	(3,681)	$	5,477	$	4	$	5,481

Comprehensive income, net	—		—		—		90		88		178		—		178
Cash dividends declared - common(2)	—		—		—		(51)		—		(51)		—		(51)
Cash dividends declared - preferred(3)	—		—		—		(4)		—		(4)		—		(4)


Stock option and incentive plans, net	1		(3)		—		—		—		(2)		—		(2)

Payments to acquire treasury stock, including fees	—		—		(150)		—		—		(150)		—		(150)



Balance at September 30, 2020	$	214	$	2,719	$	(150)	$	6,258	$	(3,593)	$	5,448	$	4	$	5,452


	Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL(1)		Xerox Holdings Shareholders’ Equity		Non- controlling Interests		Total Equity
Balance at June 30, 2019	$	225	$	3,124	$	(131)	$	5,391	$	(3,647)	$	4,962	$	30	$	4,992

Comprehensive income (loss), net	—		—		—		221		(203)		18		2		20
Cash dividends declared - common(2)	—		—		—		(56)		—		(56)		—		(56)
Cash dividends declared - preferred(3)	—		—		—		(4)		—		(4)		—		(4)


Stock option and incentive plans, net	—		3		—		—		—		3		—		3

Payments to acquire treasury stock, including fees	—		—		(68)		—		—		(68)		—		(68)
Cancellation of treasury stock	(4)		(127)		131		—		—		—		—		—
Distributions to noncontrolling interests	—		—		—		—		—		—		(1)		(1)

Balance at September 30, 2019	$	221	$	3,000	$	(68)	$	5,552	$	(3,850)	$	4,855	$	31	$	4,886


	Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL(1)		Xerox Holdings Shareholders’ Equity		Non-controlling Interests		Total Equity
Balance at December 31, 2019	$	215	$	2,782	$	(76)	$	6,312	$	(3,646)	$	5,587	$	7	$	5,594

Comprehensive income, net	—		—		—		115		53		168		—		168
Cash dividends declared - common(2)	—		—		—		(158)		—		(158)		—		(158)
Cash dividends declared - preferred(3)	—		—		—		(11)		—		(11)		—		(11)


Stock option and incentive plans, net	1		11		—		—		—		12		—		12

Payments to acquire treasury stock, including fees	—		—		(150)		—		—		(150)		—		(150)
Cancellation of treasury stock	(2)		(74)		76		—		—		—		—		—
Distributions to noncontrolling interests	—		—		—		—		—		—		(3)		(3)

Balance at September 30, 2020	$	214	$	2,719	$	(150)	$	6,258	$	(3,593)	$	5,448	$	4	$	5,452


	Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL(1)		Xerox Holdings Shareholders’ Equity		Non- controlling Interests		Total Equity
Balance at December 31, 2018	$	232	$	3,321	$	(55)	$	5,072	$	(3,565)	$	5,005	$	34	$	5,039
Cumulative effect of change in accounting principle	—		—		—		127		(127)		—		—		—
Comprehensive income (loss), net	—		—		—		535		(158)		377		8		385
Cash dividends declared - common(2)	—		—		—		(171)		—		(171)		—		(171)
Cash dividends declared - preferred(3)	—		—		—		(11)		—		(11)		—		(11)


Stock option and incentive plans, net	—		23		—		—		—		23		—		23

Payments to acquire treasury stock, including fees	—		—		(368)		—		—		(368)		—		(368)
Cancellation of treasury stock	(11)		(344)		355		—		—		—		—		—
Distributions to noncontrolling interests	—		—		—		—		—		—		(11)		(11)

Balance at September 30, 2019	$	221	$	3,000	$	(68)	$	5,552	$	(3,850)	$	4,855	$	31	$	4,886

_____________

(1)Refer to Note 19 - Other Comprehensive Income (Loss) for the components of AOCL.

(2)Cash dividends declared on common stock for the three and nine months ended September 30, 2020 and 2019 were $0.25 per share and $0.75 per share, respectively.

(3)Cash dividends declared on preferred stock for the three and nine months ended September 30, 2020 and 2019 were $20.00 per share and $60.00 per share, respectively.

Summary of Treasury Stock Purchases

The following is a summary of the purchases of common stock during 2020:


	Shares	Amount
Balance at December 31, 2019	2,031	$	76
Purchases(1)	8,007	150
Cancellations	(2,031)	(76)
Balance at September 30, 2020	8,007	$	150

_____________

(1)Includes associated fees.

Shareholders' Equity of Xerox (Tables)

9 Months Ended

Sep. 30, 2020

Schedule of Stockholders Equity

The shareholders' equity information presented below reflects the consolidated activity of Xerox Holdings.


	Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL(1)		Xerox Holdings Shareholders’ Equity		Non-controlling Interests		Total Equity
Balance at June 30, 2020	$	213	$	2,722	$	—	$	6,223	$	(3,681)	$	5,477	$	4	$	5,481

Comprehensive income, net	—		—		—		90		88		178		—		178
Cash dividends declared - common(2)	—		—		—		(51)		—		(51)		—		(51)
Cash dividends declared - preferred(3)	—		—		—		(4)		—		(4)		—		(4)


Stock option and incentive plans, net	1		(3)		—		—		—		(2)		—		(2)

Payments to acquire treasury stock, including fees	—		—		(150)		—		—		(150)		—		(150)



Balance at September 30, 2020	$	214	$	2,719	$	(150)	$	6,258	$	(3,593)	$	5,448	$	4	$	5,452


	Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL(1)		Xerox Holdings Shareholders’ Equity		Non- controlling Interests		Total Equity
Balance at June 30, 2019	$	225	$	3,124	$	(131)	$	5,391	$	(3,647)	$	4,962	$	30	$	4,992

Comprehensive income (loss), net	—		—		—		221		(203)		18		2		20
Cash dividends declared - common(2)	—		—		—		(56)		—		(56)		—		(56)
Cash dividends declared - preferred(3)	—		—		—		(4)		—		(4)		—		(4)


Stock option and incentive plans, net	—		3		—		—		—		3		—		3

Payments to acquire treasury stock, including fees	—		—		(68)		—		—		(68)		—		(68)
Cancellation of treasury stock	(4)		(127)		131		—		—		—		—		—
Distributions to noncontrolling interests	—		—		—		—		—		—		(1)		(1)

Balance at September 30, 2019	$	221	$	3,000	$	(68)	$	5,552	$	(3,850)	$	4,855	$	31	$	4,886


	Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL(1)		Xerox Holdings Shareholders’ Equity		Non-controlling Interests		Total Equity
Balance at December 31, 2019	$	215	$	2,782	$	(76)	$	6,312	$	(3,646)	$	5,587	$	7	$	5,594

Comprehensive income, net	—		—		—		115		53		168		—		168
Cash dividends declared - common(2)	—		—		—		(158)		—		(158)		—		(158)
Cash dividends declared - preferred(3)	—		—		—		(11)		—		(11)		—		(11)


Stock option and incentive plans, net	1		11		—		—		—		12		—		12

Payments to acquire treasury stock, including fees	—		—		(150)		—		—		(150)		—		(150)
Cancellation of treasury stock	(2)		(74)		76		—		—		—		—		—
Distributions to noncontrolling interests	—		—		—		—		—		—		(3)		(3)

Balance at September 30, 2020	$	214	$	2,719	$	(150)	$	6,258	$	(3,593)	$	5,448	$	4	$	5,452


	Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL(1)		Xerox Holdings Shareholders’ Equity		Non- controlling Interests		Total Equity
Balance at December 31, 2018	$	232	$	3,321	$	(55)	$	5,072	$	(3,565)	$	5,005	$	34	$	5,039
Cumulative effect of change in accounting principle	—		—		—		127		(127)		—		—		—
Comprehensive income (loss), net	—		—		—		535		(158)		377		8		385
Cash dividends declared - common(2)	—		—		—		(171)		—		(171)		—		(171)
Cash dividends declared - preferred(3)	—		—		—		(11)		—		(11)		—		(11)


Stock option and incentive plans, net	—		23		—		—		—		23		—		23

Payments to acquire treasury stock, including fees	—		—		(368)		—		—		(368)		—		(368)
Cancellation of treasury stock	(11)		(344)		355		—		—		—		—		—
Distributions to noncontrolling interests	—		—		—		—		—		—		(11)		(11)

Balance at September 30, 2019	$	221	$	3,000	$	(68)	$	5,552	$	(3,850)	$	4,855	$	31	$	4,886

_____________

(1)Refer to Note 19 - Other Comprehensive Income (Loss) for the components of AOCL.

(2)Cash dividends declared on common stock for the three and nine months ended September 30, 2020 and 2019 were $0.25 per share and $0.75 per share, respectively.

(3)Cash dividends declared on preferred stock for the three and nine months ended September 30, 2020 and 2019 were $20.00 per share and $60.00 per share, respectively.

Schedule of Stockholders Equity

The shareholders' equity information presented below reflects the consolidated activity of Xerox.


	Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL(1)		Xerox Shareholder's Equity		Non-controlling Interests		Total Equity
Balance at June 30, 2020	$	—	$	3,515	$	—	$	5,925	$	(3,681)	$	5,759	$	4	$	5,763
Comprehensive income, net	—		—		—		101		88		189		—		189


Dividends declared to parent	—		—		—		(55)		—		(55)		—		(55)
Capital contributions from parent(2)	—		1,494		—		—		—		1,494		—		1,494
Transfers to parent	—		(150)		—		—		—		(150)		—		(150)








Balance at September 30, 2020	$	—	$	4,859	$	—	$	5,971	$	(3,593)	$	7,237	$	4	$	7,241


	Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL(1)		Xerox Shareholders’ Equity		Non- controlling Interests		Total Equity
Balance at June 30, 2019	$	225	$	3,124	$	(131)	$	5,391	$	(3,647)	$	4,962	$	30	$	4,992

Comprehensive income (loss), net	—		—		—		221		(203)		18		2		20



Dividends declared to parent	—		—		—		(58)				(58)		—		(58)
Stock option and incentive plans, net	—		(2)		—		—		—		(2)		—		(2)


Cancellation of treasury stock	(4)		(127)		131		—		—		—		—		—
Distributions to noncontrolling interests	—		—		—		—		—		—		(1)		(1)
Reorganization	(221)		446		—		—		—		225		—		225
Balance at September 30, 2019	$	—	$	3,441	$	—	$	5,554	$	(3,850)	$	5,145	$	31	$	5,176


	Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL(1)		Xerox Shareholder's Equity		Non-controlling Interests		Total Equity
Balance at December 31, 2019	$	—	$	3,266	$	—	$	6,247	$	(3,646)	$	5,867	$	7	$	5,874

Comprehensive income, net	—		—		—		126		53		179		—		179


Dividends declared to parent	—		—		—		(402)		—		(402)		—		(402)
Capital contributions from parent(2)	—		1,494				—		—		1,494		—		1,494
Transfers from parent	—		99		—		—		—		99		—		99






Distributions to noncontrolling interests	—		—		—		—		—		—		(3)		(3)


Balance at September 30, 2020	$	—	$	4,859	$	—	$	5,971	$	(3,593)	$	7,237	$	4	$	7,241


	Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL(1)		Xerox Shareholders’ Equity		Non- controlling Interests		Total Equity
Balance at December 31, 2018	$	232	$	3,321	$	(55)	$	5,072	$	(3,565)	$	5,005	$	34	$	5,039
Cumulative effect of change in accounting principle	—		—		—		127		(127)		—		—		—
Comprehensive income (loss), net	—		—		—		535		(158)		377		8		385
Cash dividends declared - common	—		—		—		(115)		—		(115)		—		(115)
Cash dividends declared - preferred	—		—		—		(7)		—		(7)		—		(7)
Dividends declared to parent	—		—		—		(58)		—		(58)		—		(58)


Stock option and incentive plans, net	—		18		—		—		—		18		—		18

Payments to acquire treasury stock, including fees	—		—		(300)		—		—		(300)		—		(300)
Cancellation of treasury stock	(11)		(344)		355		—		—		—		—		—
Distributions to noncontrolling interests	—		—		—		—		—		—		(11)		(11)
Reorganization	(221)		446		—		—		—		225		—		225
Balance at September 30, 2019	$	—	$	3,441	$	—	$	5,554	$	(3,850)	$	5,145	$	31	$	5,176

_____________

(1)Refer to Note 19 - Other Comprehensive Income (Loss) for the components of AOCL.

Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Sep. 30, 2020

Equity [Abstract]

Schedule of Other Comprehensive (Loss) Income

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


	Three Months Ended September 30,								Nine Months Ended September 30,
	2020				2019				2020				2019
	Pre-tax		Net of Tax		Pre-tax		Net of Tax		Pre-tax		Net of Tax		Pre-tax		Net of Tax
Translation adjustments gains (losses)	$	176	$	179	$	(153)	$	(155)	$	(2)	$	7	$	(121)	$	(122)
Unrealized gains (losses)
Changes in fair value of cash flow hedges gains	1		1		4		4		5		4		10		8
Changes in cash flow hedges reclassed to earnings(1)	—		—		(3)		(3)		(1)		—		(6)		(5)

Net Unrealized gains	1		1		1		1		4		4		4		3

Defined benefit plans (losses) gains
Net actuarial/prior service (losses) gains	(77)		(58)		(126)		(95)		9		6		(162)		(122)
Prior service amortization(2)	(20)		(15)		(19)		(14)		(59)		(44)		(59)		(44)
Actuarial loss amortization/settlement(2)	31		23		34		26		104		79		123		93
Fuji Xerox changes in defined benefit plans, net(3)	—		—		(3)		(3)		—		—		(1)		(1)
Other (losses) gains(4)	(42)		(42)		38		38		1		1		36		36
Changes in defined benefit plans (losses) gains	(108)		(92)		(76)		(48)		55		42		(63)		(38)

Other Comprehensive Income (Loss)	69		88		(228)		(202)		57		53		(180)		(157)
Less: Other comprehensive income attributable to noncontrolling interests	—		—		1		1		—		—		1		1
Other Comprehensive Income (Loss) Attributable to Xerox Holdings/Xerox	$	69	$	88	$	(229)	$	(203)	$	57	$	53	$	(181)	$	(158)

____________

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

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

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

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

Schedule of Accumulated Other Comprehensive Loss

AOCL is comprised of the following:


	September 30, 2020		December 31, 2019
Cumulative translation adjustments	$	(1,954)	$	(1,961)
Other unrealized gains (losses), net	2		(2)
Benefit plans net actuarial losses and prior service credits	(1,641)		(1,683)
Total Accumulated other comprehensive loss attributable to Xerox Holdings/Xerox	$	(3,593)	$	(3,646)

Earnings per Share (Tables)

9 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Basic and Diluted Earnings per Share

The following table sets forth the computation of basic and diluted earnings per share of common stock of Xerox Holdings:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Basic Earnings per Share
Net Income from Continuing Operations Attributable to Xerox Holdings	$	90	$	157	$	115	$	382
Accrued dividends on preferred stock	(4)		(4)		(11)		(11)
Adjusted Net income from continuing operations available to common shareholders	86		153		104		371
Income from discontinued operations attributable to Xerox Holdings, net of tax	—		64		—		153
Adjusted Net income available to common shareholders	$	86	$	217	$	104	$	524

Weighted average common shares outstanding	211,169		220,269		212,163		224,257

Basic Earnings per Share:
Continuing operations	$	0.41	$	0.70	$	0.49	$	1.66
Discontinued operations	—		0.29		—		0.68
Basic Earnings per Share	$	0.41	$	0.99	$	0.49	$	2.34

Diluted Earnings per Share
Net Income from Continuing Operations Attributable to Xerox Holdings	$	90	$	157	$	115	$	382
Accrued dividends on preferred stock	(4)		—		(11)		—
Adjusted Net income from continuing operations available to common shareholders	86		157		104		382
Income from discontinued operations attributable to Xerox Holdings, net of tax	—		64		—		153
Adjusted Net income available to common shareholders	$	86	$	221	$	104	$	535

Weighted average common shares outstanding	211,169		220,269		212,163		224,257
Common shares issuable with respect to:
Stock options	—		42		20		37
Restricted stock and performance shares	1,538		4,014		2,600		4,429
Convertible preferred stock	—		6,742		—		6,742

Adjusted Weighted average common shares outstanding	212,707		231,067		214,783		235,465

Diluted Earnings per Share:
Continuing operations	$	0.41	$	0.68	$	0.49	$	1.62
Discontinued operations	—		0.28		—		0.65
Diluted Earnings per Share	$	0.41	$	0.96	$	0.49	$	2.27

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:
Stock options	808		841		788		847
Restricted stock and performance shares	3,118		2,358		2,055		1,944
Convertible preferred stock	6,742		—		6,742		—
Total Anti-Dilutive Securities	10,668		3,199		9,585		2,791

Dividends per Common Share	$	0.25	$	0.25	$	0.75	$	0.75

Contingencies and Litigation (Tables)

9 Months Ended

Sep. 30, 2020

Commitments and Contingencies Disclosure [Abstract]

Brazil Tax Contingencies

Below is a summary of our Brazilian tax contingencies:


	September 30, 2020		December 31, 2019
Tax contingency - unreserved	$	325	$	442
Escrow cash deposits	36		51
Surety bonds	97		135
Letters of credit	69		91
Liens on Brazilian assets	—		—

Tabular disclosure of the loss contingencies that were reported in the period or disclosed as of the balance sheet date.

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=121557415&loc=d3e14472-108349

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=121557415&loc=d3e14326-108349

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=121557415&loc=d3e14453-108349

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121557415&loc=d3e14615-108349

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=121555522&loc=d3e12021-110248

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=121557415&loc=d3e14394-108349

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=121557415&loc=d3e14435-108349

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121557415&loc=d3e14557-108349

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=121555522&loc=d3e12053-110248

Accounts, Notes, Loans and Financing Receivable [Line Items]

Recent Accounting Pronouncements (Details) $ in Millions	9 Months Ended
Recent Accounting Pronouncements (Details) $ in Millions	Sep. 30, 2020 USD ($)
Accounting Standards Update and Change in Accounting Principle [Abstract]
Lessor, lease, term of deferral	3 months
Lessor, lease receivable, amount deferred	$ 33
Lessor, lease receivable, maximum percentage deferred	1.00%
Lessor, lease receivables	$ 337

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Disaggregation of Revenue [Line Items]
Total Revenues	$ 1,767	$ 2,179	$ 5,092	$ 6,622
Equipment
Disaggregation of Revenue [Line Items]
Total Revenues	419	494	1,054	1,446
Supplies, paper and other sales
Disaggregation of Revenue [Line Items]
Total Revenues	232	290	622	862
Maintenance agreements
Disaggregation of Revenue [Line Items]
Total Revenues	443	567	1,338	1,774
Service arrangements
Disaggregation of Revenue [Line Items]
Total Revenues	486	611	1,512	1,883
Rental and other
Disaggregation of Revenue [Line Items]
Total Revenues	132	157	396	473
Financing
Disaggregation of Revenue [Line Items]
Total Revenues	55	60	170	184
Sales
Disaggregation of Revenue [Line Items]
Total Revenues	651	784	1,676	2,308
Sales \| Direct equipment lease
Disaggregation of Revenue [Line Items]
Total Revenues	151	200	388	484
Sales \| Distributors & resellers
Disaggregation of Revenue [Line Items]
Total Revenues	245	301	604	949
Sales \| Customer direct
Disaggregation of Revenue [Line Items]
Total Revenues	255	283	684	875
United States
Disaggregation of Revenue [Line Items]
Total Revenues	1,062	1,343	3,101	3,955
Europe
Disaggregation of Revenue [Line Items]
Total Revenues	480	521	1,317	1,705
Canada
Disaggregation of Revenue [Line Items]
Total Revenues	94	123	278	377
Other
Disaggregation of Revenue [Line Items]
Total Revenues	$ 131	$ 192	$ 396	$ 585

Revenue - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Revenue - Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Revenue, Contract Assets, Liabilities and Costs[Line Items]
Contract liabilities	$ 130		$ 130		$ 137
Contract liability amortization period			30 months
Deferred incremental direct costs, amortization period	4 years		4 years
Deferred incremental direct costs net of accumulated amortization	$ 145		$ 145		163
Contract Fulfillment Costs and Inducements
Revenue, Contract Assets, Liabilities and Costs[Line Items]
Capitalized contract costs, amounts deferred	12		12		$ 13
Capitalized contract costs, amortization	$ 1	$ 1	$ 3	$ 4

Revenue - Incremental Direct Costs (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenue from Contract with Customer [Abstract]
Incremental direct costs of obtaining a contract	$ 15	$ 20	$ 43	$ 56
Amortization of incremental direct costs	$ 19	$ 23	$ 60	$ 66

Lessor (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Lessor (Details) - USD ($) $ in Millions	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Leases [Abstract]
Revenue from sales type leases	$ 151	$ 200	$ 388	$ 484
Interest income on lease receivables	55	60	170	184
Lease income - operating leases	77	99	242	303
Variable lease income	15	25	51	80
Total Lease income	298	384	851	1,051
Profit at lease commencement, sales type leases	$ 52	$ 86	$ 138	$ 206

Acquisitions (Details) £ in Millions, $ in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2020 USD ($) business	Mar. 31, 2020 GBP (£) business	Mar. 31, 2020 CAD ($) business	Sep. 30, 2020 USD ($)	Dec. 31, 2019 USD ($)
Business Acquisition [Line Items]
Acquisition	$ 193
Goodwill				$ 3,996	$ 3,900
UNITED KINGDOM
Business Acquisition [Line Items]
Number of businesses acquired \| business	3	3	3
Arena Group, Altodigital Networks and ITEC Connect
Business Acquisition [Line Items]
Acquisition	$ 171	£ 132
Arena Group
Business Acquisition [Line Items]
Percentage of ownership acquired	100.00%
Altodigital Networks
Business Acquisition [Line Items]
Percentage of ownership acquired	100.00%
ITEC Connect
Business Acquisition [Line Items]
Percentage of ownership acquired	100.00%
Digitex Canada
Business Acquisition [Line Items]
Acquisition	$ 22		$ 29
Percentage of ownership acquired	100.00%
2020 Acquisitions
Business Acquisition [Line Items]
Intangible assets	$ 70
Goodwill	105
HP Inc. \| Bridge Loan
Business Acquisition [Line Items]
Short-term debt, amount committed by lender	$ 24,000

Divestitures (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Divestitures (Details) - USD ($) $ in Millions	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Nov. 30, 2019
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenue	$ 0	$ 21	$ 0	$ 73
Income from operations	0	64	0	159
Gain on disposal	0	0	0	0
Income before income taxes	0	64	0	159
Income tax expense	0	0	0	2
Income from discontinued operations, net of tax	0	64	0	157
Less: Income from discontinued operations attributable to noncontrolling interests	0	0	0	4
Income from discontinued operations, attributable to Xerox Holdings, net of tax	$ 0	64	$ 0	153
Equity in net income of FX		$ 57		$ 132
Discontinued Operations, Disposed of by Sale \| Fuji Xerox
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Ownership percentage					25.00%
Discontinued Operations, Disposed of by Sale \| Xerox International Partners
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Ownership percentage					51.00%

Supplementary Financial Information - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Supplemental Financial Information [Abstract]
Cash and cash equivalents	$ 3,242	$ 2,740
Restricted cash
Litigation deposits in Brazil	39	55
Other restricted cash	16	0
Total Restricted cash	55	55
Cash, cash equivalents and restricted cash	$ 3,297	$ 2,795

Supplementary Financial Information - Restricted Cash Balance Sheet Location (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Restricted Cash and Cash Equivalents Items [Line Items]
Total Restricted cash	$ 55	$ 55
Other current assets
Restricted Cash and Cash Equivalents Items [Line Items]
Total Restricted cash	16	0
Other long-term assets
Restricted Cash and Cash Equivalents Items [Line Items]
Total Restricted cash	$ 39	$ 55

Supplementary Financial Information - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Supplemental Financial Information [Abstract]
Provision for receivables	$ 17	$ 13	$ 104	$ 40
Provision for inventory	6	3	20	18
Provision for product warranty	3	3	6	10
Depreciation of buildings and equipment	21	24	64	77
Depreciation and obsolescence of equipment on operating leases	45	56	142	172
Amortization of internal use software	11	15	32	48
Amortization of acquired intangible assets	13	9	34	35
Amortization of customer contract costs	20	24	63	70
Cost of additions to land, buildings and equipment	9	11	36	30
Cost of additions to internal use software	9	6	24	18
Common stock dividends - Xerox Holdings	57	57	165	172
Preferred stock dividends - Xerox Holdings	4	4	11	11
Repurchases related to stock-based compensation - Xerox Holdings	$ 9	$ 10	$ 19	$ 20

Accounts Receivable, Net - Summary (Details) - USD ($)
$ in Millions

3 Months Ended

9 Months Ended

12 Months Ended

Sep. 30, 2020

Jun. 30, 2020

Mar. 31, 2020

Sep. 30, 2020

Dec. 31, 2019

Sep. 30, 2020

Dec. 31, 2019

Accounts Receivable, Allowance for Credit Loss [Roll Forward]

$ (63)

^[1]

$ (60)

$ (63)

^[1]

$ (55)

^[1]

$ (63)

^[1]

$ (55)

^[1]

Accounts receivable, net

^[1]

895

1,236

Balance

^[1]

$ 63

^[1]

$ 55

^[1]

Provision for receivables

Charge-offs

(6)

(8)

(2)

Recoveries and other

$ (1)

Credit Concentration Risk | Accounts Receivable

Accounts Receivable, Allowance for Credit Loss [Roll Forward]

Concentration risk (percentage)

6.60%

4.30%

Accounts Receivable

Accounts, Notes, Loans and Financing Receivable [Line Items]

Invoiced

731

980

Accrued

227

311

Accounts Receivable, Allowance for Credit Loss [Roll Forward]

(63)

$ (63)

$ (55)

(63)

(55)

Accounts receivable, net

$ 895

$ 1,236

Balance

$ 63

$ 55

[1]	Allowances at September 30, 2020 determined in accordance with ASU 2016-13 adopted effective January 1, 2020 - refer to Notes 2, 8 and 9 for additional information.

Accounts Receivable, Net - Accounts Receivable Sales Arrangements (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Accounts Receivable Sales Arrangements [Abstract]
Uncollected accounts receivable sold and derecognized	$ 83		$ 83		$ 165
Accounts Receivable
Accounts Receivable Sales Arrangements [Abstract]
Accounts receivable sales	$ 115	$ 67	$ 182	$ 265

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

3 Months Ended

9 Months Ended

12 Months Ended

Sep. 30, 2020

Jun. 30, 2020

Mar. 31, 2020

Sep. 30, 2019

Jun. 30, 2019

Mar. 31, 2019

Sep. 30, 2020

Dec. 31, 2019

Dec. 31, 2018

Financing Receivable, Allowance for Credit Loss [Line Items]

Gross receivables

$ 3,600

$ 3,865

Unearned income

(382)

(425)

Subtotal

3,218

3,440

Residual values

(142)

$ (143)

$ (146)

$ (93)

(142)

(89)

$ (92)

Less: Billed portion of finance receivables, net

3,076

3,351

111

Less: Current portion of finance receivables not billed, net

1,066

1,158

Finance receivables due after one year, net

^[1]

1,899

$ 1,899

$ 2,082

Finance receivables lease portfolio -low - years

2 years

Finance lease portfolio average maturity - high - years

3 years

Charge-offs

(13)

(8)

(9)

(11)

(8)

Credit Concentration Risk | Financing Receivable

Financing Receivable, Allowance for Credit Loss [Line Items]

Concentration risk (percentage)

4.40%

2.60%

Europe

Financing Receivable, Allowance for Credit Loss [Line Items]

Subtotal

1,115

$ 1,115

$ 1,192

Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]

(38)

(40)

(27)

(28)

$ (38)

$ (19)

$ (27)

Charge-offs

$ (5)

$ (2)

$ (4)

$ (3)

[1]	Allowances at September 30, 2020 determined in accordance with ASU 2016-13 adopted effective January 1, 2020 - refer to Notes 2, 8 and 9 for additional information.

Finance Receivables, Net - Allowance for Credit Losses (Details) - USD ($) $ in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2020
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	$ 143	$ 146	$ 89	$ 93	$ 93	$ 92	$ 89
Provision	9	4	66	8	8	9
Charge-offs	(13)	(8)	(8)	(9)	(11)	(8)
Recoveries and other	3	1	(1)	1	3	0
Ending Balance	142	143	146	93	93	93	142
Finance receivables collectively evaluated for impairment	3,218			3,381			$ 3,218
Loss rates of customers with investment grade credit quality							1.00%
Loss rates of customers with non investment grade credit quality, low range							2.00%
Loss rates of customers with non investment grade credit quality, high range							5.00%
Loss rates of customers with substandard doubtful credit quality - low							7.00%
Loss rates of customers with substandard doubtful credit quality - high							10.00%
United States
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	89	91	59	53	53	53	$ 59
Provision	6	3	35	6	4	4
Charge-offs	(6)	(5)	(3)	(5)	(5)	(4)
Recoveries and other	0	0	0	1	1	0
Ending Balance	89	89	91	55	53	53	89
Finance receivables collectively evaluated for impairment	1,819			1,900			1,819
Canada
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	16	15	11	12	12	12	11
Provision	0	1	6	0	1	1
Charge-offs	(2)	(1)	(1)	(1)	(3)	(1)
Recoveries and other	1	1	(1)	0	2	0
Ending Balance	15	16	15	11	12	12	15
Finance receivables collectively evaluated for impairment	284			324			284
Europe
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	38	40	19	28	28	27	19
Provision	3	0	25	2	3	4
Charge-offs	(5)	(2)	(4)	(3)	(3)	(3)
Recoveries and other	2	0	0	0	0	0
Ending Balance	38	$ 38	$ 40	27	$ 28	$ 28	38
Finance receivables collectively evaluated for impairment	$ 1,115			$ 1,157			$ 1,115

Finance Receivables, Net - Credit Quality Indicators (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Financing Receivable, Credit Quality Indicator [Line Items]
2020	$ 798
2019	1,066
2018	757
2017	404
2016	164
Prior	29
Subtotal	3,218	$ 3,440
United States (Direct):
Financing Receivable, Credit Quality Indicator [Line Items]
2020	224
2019	310
2018	233
2017	134
2016	66
Prior	13
Subtotal	980	1,103
United States (Indirect):
Financing Receivable, Credit Quality Indicator [Line Items]
2020	253
2019	296
2018	181
2017	83
2016	24
Prior	2
Subtotal	839	819
Canada
Financing Receivable, Credit Quality Indicator [Line Items]
2020	69
2019	85
2018	65
2017	43
2016	19
Prior	3
Subtotal	284	326
Europe
Financing Receivable, Credit Quality Indicator [Line Items]
2020	252
2019	375
2018	278
2017	144
2016	55
Prior	11
Subtotal	1,115	1,192
Low Credit Risk
Financing Receivable, Credit Quality Indicator [Line Items]
2020	423
2019	563
2018	418
2017	216
2016	99
Prior	16
Subtotal	1,735	1,716
Low Credit Risk \| United States (Direct):
Financing Receivable, Credit Quality Indicator [Line Items]
2020	117
2019	160
2018	144
2017	87
2016	48
Prior	7
Subtotal	563	640
Low Credit Risk \| United States (Indirect):
Financing Receivable, Credit Quality Indicator [Line Items]
2020	154
2019	180
2018	103
2017	45
2016	14
Prior	1
Subtotal	497	258
Low Credit Risk \| Canada
Financing Receivable, Credit Quality Indicator [Line Items]
2020	24
2019	34
2018	26
2017	11
2016	8
Prior	2
Subtotal	105	163
Low Credit Risk \| Europe
Financing Receivable, Credit Quality Indicator [Line Items]
2020	128
2019	189
2018	145
2017	73
2016	29
Prior	6
Subtotal	570	655
Average Credit Risk
Financing Receivable, Credit Quality Indicator [Line Items]
2020	268
2019	417
2018	279
2017	146
2016	51
Prior	9
Subtotal	1,170	1,352
Average Credit Risk \| United States (Direct):
Financing Receivable, Credit Quality Indicator [Line Items]
2020	42
2019	103
2018	60
2017	31
2016	12
Prior	3
Subtotal	251	331
Average Credit Risk \| United States (Indirect):
Financing Receivable, Credit Quality Indicator [Line Items]
2020	86
2019	110
2018	73
2017	35
2016	9
Prior	1
Subtotal	314	445
Average Credit Risk \| Canada
Financing Receivable, Credit Quality Indicator [Line Items]
2020	32
2019	40
2018	29
2017	20
2016	8
Prior	1
Subtotal	130	97
Average Credit Risk \| Europe
Financing Receivable, Credit Quality Indicator [Line Items]
2020	108
2019	164
2018	117
2017	60
2016	22
Prior	4
Subtotal	475	479
High Credit Risk
Financing Receivable, Credit Quality Indicator [Line Items]
2020	107
2019	86
2018	60
2017	42
2016	14
Prior	4
Subtotal	313	372
High Credit Risk \| United States (Direct):
Financing Receivable, Credit Quality Indicator [Line Items]
2020	65
2019	47
2018	29
2017	16
2016	6
Prior	3
Subtotal	166	132
High Credit Risk \| United States (Indirect):
Financing Receivable, Credit Quality Indicator [Line Items]
2020	13
2019	6
2018	5
2017	3
2016	1
Prior	0
Subtotal	28	116
High Credit Risk \| Canada
Financing Receivable, Credit Quality Indicator [Line Items]
2020	13
2019	11
2018	10
2017	12
2016	3
Prior	0
Subtotal	49	66
High Credit Risk \| Europe
Financing Receivable, Credit Quality Indicator [Line Items]
2020	16
2019	22
2018	16
2017	11
2016	4
Prior	1
Subtotal	$ 70	$ 58

Finance Receivables, Net - Aging of Billed Finance Receivables (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Financing Receivable, Past Due [Line Items]
Subtotal	$ 3,218	$ 3,440
Finance receivables, greater than 90 days and accruing	135	106
Billed Revenues
Financing Receivable, Past Due [Line Items]
Current finance receivables	77	82
Subtotal	115	115
Unbilled Revenues
Financing Receivable, Past Due [Line Items]
Subtotal	3,103	3,325
31-90 Days Past Due \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Past due finance receivables	20	19
>90 Days Past Due \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Past due finance receivables	18	14
United States (Direct):
Financing Receivable, Past Due [Line Items]
Subtotal	980	1,103
Finance receivables, greater than 90 days and accruing	79	57
United States (Direct): \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Current finance receivables	35	37
Subtotal	55	56
United States (Direct): \| Unbilled Revenues
Financing Receivable, Past Due [Line Items]
Subtotal	925	1,047
United States (Direct): \| 31-90 Days Past Due \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Past due finance receivables	9	11
United States (Direct): \| >90 Days Past Due \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Past due finance receivables	11	8
United States (Indirect):
Financing Receivable, Past Due [Line Items]
Subtotal	839	819
Finance receivables, greater than 90 days and accruing	0	0
United States (Indirect): \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Current finance receivables	23	25
Subtotal	32	33
United States (Indirect): \| Unbilled Revenues
Financing Receivable, Past Due [Line Items]
Subtotal	807	786
United States (Indirect): \| 31-90 Days Past Due \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Past due finance receivables	6	5
United States (Indirect): \| >90 Days Past Due \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Past due finance receivables	3	3
United States
Financing Receivable, Past Due [Line Items]
Subtotal	1,819	1,922
Finance receivables, greater than 90 days and accruing	79	57
United States \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Current finance receivables	58	62
Subtotal	87	89
United States \| Unbilled Revenues
Financing Receivable, Past Due [Line Items]
Subtotal	1,732	1,833
United States \| 31-90 Days Past Due \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Past due finance receivables	15	16
United States \| >90 Days Past Due \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Past due finance receivables	14	11
Canada
Financing Receivable, Past Due [Line Items]
Subtotal	284	326
Finance receivables, greater than 90 days and accruing	19	17
Canada \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Current finance receivables	7	8
Subtotal	10	11
Canada \| Unbilled Revenues
Financing Receivable, Past Due [Line Items]
Subtotal	274	315
Canada \| 31-90 Days Past Due \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Past due finance receivables	2	2
Canada \| >90 Days Past Due \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Past due finance receivables	1	1
Europe
Financing Receivable, Past Due [Line Items]
Subtotal	1,115	1,192
Finance receivables, greater than 90 days and accruing	37	32
Europe \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Current finance receivables	12	12
Subtotal	18	15
Europe \| Unbilled Revenues
Financing Receivable, Past Due [Line Items]
Subtotal	1,097	1,177
Europe \| 31-90 Days Past Due \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Past due finance receivables	3	1
Europe \| >90 Days Past Due \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Past due finance receivables	$ 3	$ 2

Finance Receivables, Net - Secured Borrowings and Collateral (Details) - USD ($) $ in Millions	Sep. 30, 2020	Jul. 31, 2020	Dec. 31, 2019
Financing Receivable, Allowance for Credit Loss [Line Items]
Finance receivables, net	$ 3,076		$ 3,351
Special Purpose Entity (SPE)
Financing Receivable, Allowance for Credit Loss [Line Items]
Finance receivables, net	$ 314
Special Purpose Entity (SPE)
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivables sold		$ 355

Inventories and Equipment on Operating Leases, Net - Summary of Inventories (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Inventories, net [Abstract]
Finished goods	$ 823	$ 576
Work-in-process	48	47
Raw materials	107	71
Total Inventories	$ 978	$ 694

Inventories and Equipment on Operating Leases, Net - Equipment on Operating Leases and Accumulated Depreciation (Details) - Equipment on Operating Leases and Related Accumulated Depreciation - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Equipment on Operating Leases, Net [Line Items]
Equipment on operating leases	$ 1,388	$ 1,443
Accumulated depreciation	(1,087)	(1,079)
Equipment on operating leases, net	$ 301	$ 364

Inventories and Equipment on Operating Leases, Net - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Jul. 31, 2020	Dec. 31, 2019
Equipment on Operating Leases, Net [Line Items]
Contingent rentals on operating lease, total	$ 15	$ 25	$ 51	$ 80
Equipment on operating leases, net	301		301			$ 364
Special Purpose Entity (SPE)
Equipment on Operating Leases, Net [Line Items]
Equipment on operating leases, net	$ 9		$ 9
Special Purpose Entity (SPE)
Equipment on Operating Leases, Net [Line Items]
Net book value of rights to payments under operating leases sold					$ 10

Lessee - Additional Information (Details) $ in Millions	Sep. 30, 2020 USD ($)
Leases [Abstract]
Remaining terms of leases (years)	12 years
Remaining terms of leases (years)	6 years
Remaining lease obligation	$ 9
Finance leases, discount rate	4.41%
Finance lease, right-of-use asset	$ 11
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization

Lessee - Components of Lease Expense (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Leases [Abstract]
Operating lease expense	$ 29	$ 31	$ 85	$ 97
Short-term lease expense	5	6	15	16
Variable lease expense	12	12	34	37
Sublease income	(1)	0	(2)	(1)
Total Lease expense	$ 45	$ 49	$ 132	$ 149

Lessee - Operating Lease ROU Asset, Net and Operating Lease Liabilities (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Leases [Abstract]
Operating lease, Other long-term assets	$ 323	$ 319
Operating lease, Accrued expenses and other current liabilities	86	87
Operating lease, Other long-term liabilities	264	260
Total Operating lease liabilities	$ 350	$ 347
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:OtherAssetsNoncurrent
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:AccruedAndOtherLiabilitiesCurrent
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	us-gaap:OtherLiabilitiesNoncurrent

Lessee - Supplemental Information Related to Operating Leases (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Leases [Abstract]
Cash paid for amounts included in the measurement of lease liabilities - Operating cash flows	$ 31	$ 31	$ 89	$ 95
ROU assets obtained in exchange for new lease liabilities	$ 17	$ 5	$ 73	$ 28
Weighted-average remaining lease term (years)	5 years	4 years	5 years	4 years
Weighted-average discount rate (percent)	5.06%	5.63%	5.06%	5.63%

Restructuring Programs - Additional Information (Details) $ in Millions	3 Months Ended			9 Months Ended
	Sep. 30, 2020 USD ($)	Jun. 30, 2020 USD ($)	Mar. 31, 2020 USD ($)	Sep. 30, 2020 USD ($) employee	Dec. 31, 2019 USD ($)
Restructuring Cost and Reserve [Line Items]
Net restructuring and asset impairment charges	$ 20	$ (2)	$ 29	$ 47
Restructuring charges	23	7	35
Headcount reductions, number of employees \| employee				1,100
Restructuring charges, net reversals	3	9	6	$ 18
Restructuring related reserve	33			33	$ 37
Severance and Related Costs
Restructuring Cost and Reserve [Line Items]
Net restructuring and asset impairment charges	16	1	27
Restructuring charges	18	7	32	57
Restructuring charges, net reversals	2	6	5
Other Contractual Termination Costs
Restructuring Cost and Reserve [Line Items]
Net restructuring and asset impairment charges	1	(1)	1
Restructuring charges	1	0	1	2
Restructuring charges, net reversals	0	1	0
Asset Impairments
Restructuring Cost and Reserve [Line Items]
Net restructuring and asset impairment charges	3	(2)	1
Restructuring charges	4	0	2	$ 6
Restructuring charges, net reversals	$ 1	$ 2	$ 1

Restructuring Programs - Information Related to Restructuring Program Activity (Details) - USD ($) $ in Millions	3 Months Ended				9 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Restructuring Reserve [Roll Forward]
Balance at beginning of period	$ 49	$ 64	$ 70		$ 70
Provision	23	7	35
Reversals	(3)	(9)	(6)		(18)
Net current period charges	20	(2)	29		47
Charges against reserve and currency	(13)	(13)	(35)	$ (20)	(61)	$ (118)
Balance at end of period	56	49	64		56
Restructuring reserve, reclassification to other assets					4
Leased right-of-use asset write-off					3
Owned asset write-off					3
Severance and Related Costs
Restructuring Reserve [Roll Forward]
Balance at beginning of period	44	57	66		66
Provision	18	7	32		57
Reversals	(2)	(6)	(5)
Net current period charges	16	1	27
Charges against reserve and currency	(8)	(14)	(36)
Balance at end of period	52	44	57		52
Other Contractual Termination Costs
Restructuring Reserve [Roll Forward]
Balance at beginning of period	5	7	4		4
Provision	1	0	1		2
Reversals	0	(1)	0
Net current period charges	1	(1)	1
Charges against reserve and currency	(2)	(1)	2
Balance at end of period	4	5	7		4
Asset Impairments
Restructuring Reserve [Roll Forward]
Balance at beginning of period	0	0	0		0
Provision	4	0	2		6
Reversals	(1)	(2)	(1)
Net current period charges	3	(2)	1
Charges against reserve and currency	(3)	2	(1)
Balance at end of period	$ 0	$ 0	$ 0		$ 0

Restructuring Programs - Summary Of Reconciliation to Statements of Cash Flows (Details) - USD ($) $ in Millions	3 Months Ended				9 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Restructuring and Related Activities [Abstract]
Charges against reserve and currency	$ (13)	$ (13)	$ (35)	$ (20)	$ (61)	$ (118)
Effects of foreign currency and other non-cash items	2			3	(2)	47
Restructuring cash payments	$ (11)			$ (17)	$ (63)	$ (71)

Restructuring Programs - Certain Related Costs Incurred in Connection with Restructuring Programs (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Restructuring Cost and Reserve [Line Items]
Related restructuring costs	$ 0	$ 19	$ 17	$ 96
Retention related severance/bonuses
Restructuring Cost and Reserve [Line Items]
Related restructuring costs	(2)	11	9	31
Contractual severance costs
Restructuring Cost and Reserve [Line Items]
Related restructuring costs	0	3	4	41
Contractual severance costs \| HCL Technologies
Restructuring Cost and Reserve [Line Items]
Related restructuring costs				38
Consulting and other costs
Restructuring Cost and Reserve [Line Items]
Related restructuring costs	$ 2	$ 5	$ 4	$ 24

Debt - Narrative (Details)			1 Months Ended		3 Months Ended
Debt - Narrative (Details)	Aug. 24, 2020 USD ($)	Aug. 06, 2020 USD ($)	Aug. 24, 2020 USD ($)	Jul. 31, 2020 USD ($)	Sep. 30, 2020 USD ($)	Jun. 30, 2020	May 31, 2020 USD ($)
Special Purpose Entity (SPE)
Secured Borrowings and Collateral [Abstract]
Proceeds from bank debt				$ 340,000,000
Effective interest rate				1.73%
Special Purpose Entity (SPE)
Secured Borrowings and Collateral [Abstract]
Financing receivables sold				$ 355,000,000
Net book value of rights to payments under operating leases sold				10,000,000
Credit Agreement, Amendment No. 3
Credit Agreement [Abstract]
Minimum unrestricted cash				$ 1,000,000,000.0
Maximum ratio of net debt for borrowed money to consolidated EBITDA				4.25
Cash netting cap				$ 1,750,000,000
Credit Agreement
Credit Agreement [Abstract]
Maximum ratio of net debt for borrowed money to consolidated EBITDA						4.25
Senior Notes \| 2025 Senior Notes
Senior Notes [Abstract]
Debt value	$ 200,000,000	$ 550,000,000	$ 200,000,000
Debt interest rate, percent		5.00%
Issuance price	100.75%		100.75%
Secured Borrowings and Collateral [Abstract]
Debt interest rate, percent		5.00%
Senior Notes \| 2028 Senior Notes
Senior Notes [Abstract]
Debt value	$ 200,000,000	$ 550,000,000	$ 200,000,000
Debt interest rate, percent		5.50%
Issuance price	102.50%		102.50%
Secured Borrowings and Collateral [Abstract]
Debt interest rate, percent		5.50%
Senior Notes \| 2025 And 2028 Senior Notes
Senior Notes [Abstract]
Proceeds, net of fees and expenses	$ 405,000,000	$ 1,089,000,000	$ 1,494,000,000
Payments of debt issuance costs					$ 13,000,000
Deferred debt issuance costs					$ 13,000,000
Senior Notes \| 2020 Senior Notes 3.500%
Senior Notes [Abstract]
Debt interest rate, percent					3.50%
Debt repurchased					$ 362,000,000
Secured Borrowings and Collateral [Abstract]
Debt repurchased					$ 362,000,000
Debt interest rate, percent					3.50%
Senior Notes \| 2020 Senior Notes 2.750%
Senior Notes [Abstract]
Debt interest rate, percent					2.75%
Debt repurchased					$ 376,000,000
Secured Borrowings and Collateral [Abstract]
Debt repurchased					$ 376,000,000
Debt interest rate, percent					2.75%
Senior Notes \| 2021 Senior Notes
Senior Notes [Abstract]
Debt value					$ 1,062,000,000
Debt interest rate, percent					4.50%
Secured Borrowings and Collateral [Abstract]
Debt interest rate, percent					4.50%
Senior Notes \| 2020 Senior Notes 2.80%
Senior Notes [Abstract]
Debt interest rate, percent							2.80%
Debt repurchased							$ 313,000,000
Secured Borrowings and Collateral [Abstract]
Debt repurchased							$ 313,000,000
Debt interest rate, percent							2.80%

Debt - Special Purpose Entity (Details) - USD ($)
$ in Millions

Sep. 30, 2020

Dec. 31, 2019

Finance receivables due after one year, net

$ 1,066

$ 1,158

^[1]

1,899

2,082

301

364

Current portion of long-term debt, net

15,352

15,047

1,218

1,049

3,836

3,233

Current portion of long-term debt, net

9,686

$ 9,239

Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]

Unamortized debt issuance costs

Long term debt, net

Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]

Unamortized debt issuance costs

Special Purpose Entity (SPE)

Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]

Finance receivables due after one year, net

132

182

Current portion of long-term debt, net

323

158

157

Accumulated Other Comprehensive Income (Loss) [Line Items]

$ 315

[1]	Allowances at September 30, 2020 determined in accordance with ASU 2016-13 adopted effective January 1, 2020 - refer to Notes 2, 8 and 9 for additional information.

Debt - Interest Expense and Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Debt Disclosure [Abstract]
Interest expense	$ 59	$ 60	$ 158	$ 179
Interest income	$ 56	$ 62	$ 182	$ 193

Financial Instruments - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Mar. 31, 2020	Dec. 31, 2019
Derivative [Line Items]
Notional amount	$ 958,000,000		$ 958,000,000			$ 1,091,000,000
Average maturity of foreign exchange hedging contract - within three months (as a percent of total contracts)	80.00%		80.00%
Average maturity of foreign exchange hedging contract - within three and six months (as a percent of total contracts)	9.00%		9.00%
Average maturity of foreign exchange hedging contract - within six and twelve months (as a percent of total contracts)	11.00%		11.00%
Net asset fair value	$ 4,000,000		$ 4,000,000			(5,000,000)
Net gain recorded in AOCL expected to be reclassified to net income in the future			2,000,000
Foreign currency transaction (losses) gains, before tax	0	$ 4,000,000	$ 4,000,000	$ 6,000,000
Decrease in currency exposure			12.00%
Senior Notes Due 2021
Derivative [Line Items]
Notional amount					$ 200,000,000
Derivative asset, fair value, gross liability					$ 4,000,000
Derivatives Designated as Hedging Instruments
Derivative [Line Items]
Net asset fair value	1,000,000		$ 1,000,000			(3,000,000)
Fair Value Hedges \| Senior Notes Due 2021
Derivative [Line Items]
Hedge ineffectiveness			0
Net fair value adjustment			(4,000,000)
Cash Flow Hedging \| Foreign exchange contracts - forwards \| Cost of Sales
Derivative [Line Items]
Hedge ineffectiveness	0	0	0	0
Derivative, underlying exposure	0	$ 0	0	$ 0
Cash Flow Hedging \| Derivatives Designated as Hedging Instruments
Derivative [Line Items]
Net asset fair value	$ 1,000,000		$ 1,000,000			$ (4,000,000)

Financial Instruments - Summary of Derivative Instruments Fair Value (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative Assets	$ 7	$ 3
Derivative Liabilities	(3)	(8)
Net derivative asset (liability)	4	(5)
Derivatives Designated as Hedging Instruments
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Net derivative asset (liability)	1	(3)
Derivatives Designated as Hedging Instruments \| Other current assets \| Foreign exchange contracts - forwards
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative Assets	3	1
Derivatives Designated as Hedging Instruments \| Accrued expenses and other current liabilities \| Foreign exchange contracts - forwards
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative Liabilities	(2)	(5)
Derivatives Designated as Hedging Instruments \| Other long-term assets \| Interest rate swaps
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative Assets	0	1
Not Designated as Hedging Instrument \| Foreign exchange contracts - forwards
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Net derivative asset (liability)	3	(2)
Not Designated as Hedging Instrument \| Other current assets \| Foreign exchange contracts - forwards
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative Assets	4	1
Not Designated as Hedging Instrument \| Accrued expenses and other current liabilities \| Foreign exchange contracts - forwards
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative Liabilities	$ (1)	$ (3)

Financial Instruments - Summary of Derivative Instruments Gain (Losses) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Interest Rate Contract \| Fair Value Hedges \| Interest Expense
Summary of Derivative Instruments Gains (Losses) [Abstract]
Derivative (loss) gain recognized in interest expense	$ 0	$ 0	$ (1)	$ 4
Hedged item gain (loss) recognized in interest expense	0	0	1	(4)
Foreign exchange contracts - forwards \| Cash Flow Hedges
Summary of Derivative Instruments Gains (Losses) [Abstract]
Derivative gain recognized in OCI (effective portion)	1	4	5	10
Foreign exchange contracts - forwards \| Cash Flow Hedges \| Cost of Sales
Summary of Derivative Instruments Gains (Losses) [Abstract]
Derivative gain reclassified from AOCL to income - Cost of sales (effective portion)	$ 0	$ 3	$ 1	$ 6

Financial Instruments - Summary of Gains (Losses) Non-designated Derivative Instruments (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Foreign exchange contracts - forwards \| Other expense – Currency gain, net \| Not Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on non-designated derivative instruments	$ 2	$ 2	$ 19	$ 3

Fair Value of Financial Assets and Liabilities - Recurring (Details) - Recurring - Level 2 - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Assets
Deferred compensation investments in mutual funds	$ 18	$ 19
Total	25	22
Liabilities
Deferred compensation plan liabilities	17	18
Total	20	26
Foreign exchange contracts - forwards
Assets
Foreign currency contracts - assets	7	2
Liabilities
Foreign currency contracts - liabilities	3	8
Interest rate swaps
Assets
Interest rate swaps	$ 0	$ 1

Fair Value of Financial Assets and Liabilities - Nonrecurring (Details) - Nonrecurring - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	$ 3,242	$ 2,740
Accounts receivable, net	895	1,236
Short-term debt and current portion of long-term debt	1,218	1,049
Long-term debt	3,836	3,233
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	3,242	2,740
Accounts receivable, net	895	1,236
Short-term debt and current portion of long-term debt	1,240	1,054
Long-term debt	$ 3,899	$ 3,331

Employee Benefit Plans (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
Employee Benefit Plans (Details) - USD ($)	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2020	Dec. 31, 2019
Components of Net Periodic Benefit Costs:
Defined benefit pension cost	$ 9,000,000	$ 21,000,000	$ 46,000,000	$ 89,000,000
Forecast
Contributions [Abstract]
Expected reduction in defined contribution plan expense					$ 25,000,000
Pension Plan
Contributions [Abstract]
Defined benefit plan, contributions by employer			97,000,000	107,000,000		$ 141,000,000
Defined benefit plan, expected future employer contributions	135,000,000		135,000,000
Pension Plan \| U.S.
Components of Net Periodic Benefit Costs:
Service cost	0	1,000,000	1,000,000	2,000,000
Interest cost	21,000,000	25,000,000	65,000,000	83,000,000
Expected return on plan assets	(27,000,000)	(26,000,000)	(79,000,000)	(77,000,000)
Recognized net actuarial loss (gain)	6,000,000	7,000,000	20,000,000	18,000,000
Amortization of prior service credit	0	0	(1,000,000)	(1,000,000)
Recognized settlement loss	10,000,000	18,000,000	42,000,000	76,000,000
Recognized curtailment gain			0	0
Defined benefit pension cost	10,000,000	25,000,000	48,000,000	101,000,000
Defined contribution plans	(10,000,000)	6,000,000	1,000,000	19,000,000
Net Periodic Benefit Cost (Credit)	0	31,000,000	49,000,000	120,000,000
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss):
Net actuarial loss (gain)	77,000,000	135,000,000	(3,000,000)	171,000,000
Amortization of net actuarial (loss) gain	(16,000,000)	(25,000,000)	(62,000,000)	(94,000,000)
Amortization of net prior service credit	0	0	1,000,000	1,000,000
Total Recognized in Other Comprehensive Income (Loss)	61,000,000	110,000,000	(64,000,000)	78,000,000
Total Recognized in Net Periodic Benefit (Credit) Cost and Other Comprehensive Income (Loss)	61,000,000	141,000,000	(15,000,000)	198,000,000
Contributions [Abstract]
Defined benefit plan, contributions by employer			18,000,000	19,000,000		26,000,000
Defined benefit plan, expected future employer contributions	25,000,000		25,000,000
Pension Plan \| U.S. \| Qualified Plan
Contributions [Abstract]
Mandatory future contributions	0		0
Pension Plan \| Non-U.S.
Components of Net Periodic Benefit Costs:
Service cost	5,000,000	5,000,000	15,000,000	17,000,000
Interest cost	29,000,000	37,000,000	84,000,000	114,000,000
Expected return on plan assets	(49,000,000)	(56,000,000)	(142,000,000)	(174,000,000)
Recognized net actuarial loss (gain)	15,000,000	10,000,000	43,000,000	32,000,000
Amortization of prior service credit	(1,000,000)	0	(1,000,000)	(1,000,000)
Recognized settlement loss	0	0	0	0
Recognized curtailment gain			(1,000,000)	0
Defined benefit pension cost	(1,000,000)	(4,000,000)	(2,000,000)	(12,000,000)
Defined contribution plans	6,000,000	5,000,000	16,000,000	17,000,000
Net Periodic Benefit Cost (Credit)	5,000,000	1,000,000	14,000,000	5,000,000
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss):
Net actuarial loss (gain)	0	0	0	0
Amortization of net actuarial (loss) gain	(15,000,000)	(10,000,000)	(43,000,000)	(32,000,000)
Amortization of net prior service credit	1,000,000	0	1,000,000	1,000,000
Total Recognized in Other Comprehensive Income (Loss)	(14,000,000)	(10,000,000)	(42,000,000)	(31,000,000)
Total Recognized in Net Periodic Benefit (Credit) Cost and Other Comprehensive Income (Loss)	(9,000,000)	(9,000,000)	(28,000,000)	(26,000,000)
Contributions [Abstract]
Defined benefit plan, contributions by employer			79,000,000	88,000,000		115,000,000
Defined benefit plan, expected future employer contributions	110,000,000		110,000,000
Retiree Health
Components of Net Periodic Benefit Costs:
Service cost	1,000,000	0	2,000,000	1,000,000
Interest cost	2,000,000	3,000,000	8,000,000	11,000,000
Expected return on plan assets	0	0	0	0
Recognized net actuarial loss (gain)	0	(1,000,000)	(1,000,000)	(3,000,000)
Amortization of prior service credit	(19,000,000)	(19,000,000)	(57,000,000)	(57,000,000)
Recognized settlement loss	0	0	0	0
Recognized curtailment gain			0	0
Defined benefit pension cost	(16,000,000)	(17,000,000)	(48,000,000)	(48,000,000)
Net Periodic Benefit Cost (Credit)	(16,000,000)	(17,000,000)	(48,000,000)	(48,000,000)
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss):
Net actuarial loss (gain)	0	(9,000,000)	(6,000,000)	(9,000,000)
Amortization of net actuarial (loss) gain	0	1,000,000	1,000,000	3,000,000
Amortization of net prior service credit	19,000,000	19,000,000	57,000,000	57,000,000
Total Recognized in Other Comprehensive Income (Loss)	19,000,000	11,000,000	52,000,000	51,000,000
Total Recognized in Net Periodic Benefit (Credit) Cost and Other Comprehensive Income (Loss)	3,000,000	$ (6,000,000)	4,000,000	3,000,000
Contributions [Abstract]
Defined benefit plan, contributions by employer			17,000,000	$ 22,000,000		$ 30,000,000
Defined benefit plan, expected future employer contributions	$ 30,000,000		$ 30,000,000

Shareholders' Equity of Xerox Holdings - Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	$ 5,481	$ 4,992	$ 5,594	$ 5,039
Comprehensive income (loss), net	178	20	168	385
Cash dividends declared - common	(51)	(56)	(158)	(171)
Cash dividends declared - preferred	(4)	(4)	(11)	(11)
Stock option and incentive plans, net	(2)	3	12	23
Payments to acquire treasury stock, including fees	(150)	(68)	(150)	(368)
Cancellation of treasury stock		0	0	0
Distributions to noncontrolling interests		(1)	(3)	(11)
Balance at end of period	$ 5,452	$ 4,886	$ 5,452	$ 4,886
Dividends per common share (in dollars per share)	$ 0.25	$ 0.25	$ 0.75	$ 0.75
Dividends per preferred share (in dollars per share)	$ 20.00	$ 20.00	$ 60.00	$ 60.00
Cumulative Effect, Period of Adoption, Adjustment
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period				$ 0
Xerox Holdings/Xerox Shareholders’ Equity
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	$ 5,477	$ 4,962	$ 5,587	5,005
Comprehensive income (loss), net	178	18	168	377
Cash dividends declared - common	(51)	(56)	(158)	(171)
Cash dividends declared - preferred	(4)	(4)	(11)	(11)
Stock option and incentive plans, net	(2)	3	12	23
Payments to acquire treasury stock, including fees	(150)	(68)	(150)	(368)
Balance at end of period	5,448	4,855	5,448	4,855
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	213	225	215	232
Stock option and incentive plans, net	1		1
Cancellation of treasury stock		(4)	(2)	(11)
Balance at end of period	214	221	214	221
Additional Paid-in Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	2,722	3,124	2,782	3,321
Stock option and incentive plans, net	(3)	3	11	23
Cancellation of treasury stock		(127)	(74)	(344)
Balance at end of period	2,719	3,000	2,719	3,000
Treasury Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	0	(131)	(76)	(55)
Payments to acquire treasury stock, including fees	(150)	(68)	(150)	(368)
Cancellation of treasury stock		(131)	(76)	355
Balance at end of period	(150)	(68)	(150)	(68)
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	6,223	5,391	6,312	5,072
Comprehensive income (loss), net	90	221	115	535
Cash dividends declared - common	(51)	(56)	(158)	(171)
Cash dividends declared - preferred	(4)	(4)	(11)	(11)
Balance at end of period	6,258	5,552	6,258	5,552
Retained Earnings \| Cumulative Effect, Period of Adoption, Adjustment
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period				127
AOCL
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	(3,681)	(3,647)	(3,646)	(3,565)
Comprehensive income (loss), net	88	(203)	53	(158)
Balance at end of period	(3,593)	(3,850)	(3,593)	(3,850)
AOCL \| Cumulative Effect, Period of Adoption, Adjustment
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period				(127)
Non-controlling Interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	4	30	7	34
Comprehensive income (loss), net	0	2	0	8
Distributions to noncontrolling interests		(1)	(3)	(11)
Balance at end of period	$ 4	$ 31	$ 4	$ 31

Shareholders' Equity of Xerox Holdings - Treasury Stock (Details) - USD ($) shares in Thousands, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Increase (Decrease) In Treasury Stock [Roll Forward]
Beginning balance (in shares)			2,031
Ending balance (in shares)	8,007		8,007
Beginning balance			$ 76
Purchases	$ 150	$ 68	150	$ 368
Cancellations		0	0	0
Ending balance	$ 150		$ 150
Treasury Stock
Increase (Decrease) In Treasury Stock [Roll Forward]
Beginning balance (in shares)			2,031
Purchases (in shares)			8,007
Cancellations (in shares)			(2,031)
Ending balance (in shares)	8,007		8,007
Beginning balance			$ 76
Purchases	$ 150	68	150	368
Cancellations		$ (131)	(76)	$ 355
Ending balance	$ 150		$ 150

Shareholders' Equity of Xerox (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	$ 5,481	$ 4,992	$ 5,594	$ 5,039
Comprehensive income (loss), net	178	20	168	385
Cash dividends declared - common	(51)	(56)	(158)	(171)
Cash dividends declared - preferred	(4)	(4)	(11)	(11)
Stock option and incentive plans, net	(2)	3	12	23
Payments to acquire treasury stock, including fees	(150)	(68)	(150)	(368)
Cancellation of treasury stock		0	0	0
Distributions to noncontrolling interests		(1)	(3)	(11)
Balance at end of period	5,452	4,886	5,452	4,886
Cumulative Effect, Period of Adoption, Adjustment
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period				0
XEROX CORPORATION
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	5,763	4,992	5,874	5,039
Comprehensive income (loss), net	189	20	179	385
Cash dividends declared - common				(115)
Cash dividends declared - preferred				(7)
Dividends declared to parent	(55)	(58)	(402)	(58)
Capital contributions from parent	1,494		1,494
Transfers to parent	(150)
Transfers from parent			99
Stock option and incentive plans, net		(2)		18
Payments to acquire treasury stock, including fees				(300)
Cancellation of treasury stock		0		0
Distributions to noncontrolling interests		(1)	(3)	(11)
Reorganization		225		225
Balance at end of period	7,241	5,176	7,241	5,176
XEROX CORPORATION \| Cumulative Effect, Period of Adoption, Adjustment
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period				0
Xerox Holdings/Xerox Shareholders’ Equity
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	5,477	4,962	5,587	5,005
Comprehensive income (loss), net	178	18	168	377
Cash dividends declared - common	(51)	(56)	(158)	(171)
Cash dividends declared - preferred	(4)	(4)	(11)	(11)
Stock option and incentive plans, net	(2)	3	12	23
Payments to acquire treasury stock, including fees	(150)	(68)	(150)	(368)
Balance at end of period	5,448	4,855	5,448	4,855
Xerox Holdings/Xerox Shareholders’ Equity \| XEROX CORPORATION
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	5,759	4,962	5,867	5,005
Comprehensive income (loss), net	189	18	179	377
Cash dividends declared - common				(115)
Cash dividends declared - preferred				(7)
Dividends declared to parent	(55)	(58)	(402)	(58)
Capital contributions from parent	1,494		1,494
Transfers to parent	(150)
Transfers from parent			99
Stock option and incentive plans, net		(2)		18
Payments to acquire treasury stock, including fees				(300)
Reorganization		225		225
Balance at end of period	7,237	5,145	7,237	5,145
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	213	225	215	232
Stock option and incentive plans, net	1		1
Cancellation of treasury stock		(4)	(2)	(11)
Balance at end of period	214	221	214	221
Common Stock \| XEROX CORPORATION
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	0	225	0	232
Cancellation of treasury stock		(4)		(11)
Reorganization		(221)		(221)
Balance at end of period	0	0	0	0
Additional Paid-in Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	2,722	3,124	2,782	3,321
Stock option and incentive plans, net	(3)	3	11	23
Cancellation of treasury stock		(127)	(74)	(344)
Balance at end of period	2,719	3,000	2,719	3,000
Additional Paid-in Capital \| XEROX CORPORATION
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	3,515	3,124	3,266	3,321
Capital contributions from parent	1,494		1,494
Transfers to parent	(150)
Transfers from parent			99
Stock option and incentive plans, net		(2)		18
Cancellation of treasury stock		(127)		(344)
Reorganization		446		446
Balance at end of period	4,859	3,441	4,859	3,441
Treasury Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	0	(131)	(76)	(55)
Payments to acquire treasury stock, including fees	(150)	(68)	(150)	(368)
Cancellation of treasury stock		(131)	(76)	355
Balance at end of period	(150)	(68)	(150)	(68)
Treasury Stock \| XEROX CORPORATION
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	0	(131)	0	(55)
Payments to acquire treasury stock, including fees				(300)
Cancellation of treasury stock		131		355
Balance at end of period	0	0	0	0
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	6,223	5,391	6,312	5,072
Comprehensive income (loss), net	90	221	115	535
Cash dividends declared - common	(51)	(56)	(158)	(171)
Cash dividends declared - preferred	(4)	(4)	(11)	(11)
Balance at end of period	6,258	5,552	6,258	5,552
Retained Earnings \| Cumulative Effect, Period of Adoption, Adjustment
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period				127
Retained Earnings \| XEROX CORPORATION
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	5,925	5,391	6,247	5,072
Comprehensive income (loss), net	101	221	126	535
Cash dividends declared - common				(115)
Cash dividends declared - preferred				(7)
Dividends declared to parent	(55)	(58)	(402)	(58)
Balance at end of period	5,971	5,554	5,971	5,554
Retained Earnings \| XEROX CORPORATION \| Cumulative Effect, Period of Adoption, Adjustment
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period				127
AOCL
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	(3,681)	(3,647)	(3,646)	(3,565)
Comprehensive income (loss), net	88	(203)	53	(158)
Balance at end of period	(3,593)	(3,850)	(3,593)	(3,850)
AOCL \| Cumulative Effect, Period of Adoption, Adjustment
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period				(127)
AOCL \| XEROX CORPORATION
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	(3,681)	(3,647)	(3,646)	(3,565)
Comprehensive income (loss), net	88	(203)	53	(158)
Balance at end of period	(3,593)	(3,850)	(3,593)	(3,850)
AOCL \| XEROX CORPORATION \| Cumulative Effect, Period of Adoption, Adjustment
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period				(127)
Non-controlling Interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	4	30	7	34
Comprehensive income (loss), net	0	2	0	8
Distributions to noncontrolling interests		(1)	(3)	(11)
Balance at end of period	4	31	4	31
Non-controlling Interests \| XEROX CORPORATION
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	4	30	7	34
Comprehensive income (loss), net		2		8
Distributions to noncontrolling interests		(1)	(3)	(11)
Balance at end of period	$ 4	$ 31	$ 4	$ 31

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

3 Months Ended

9 Months Ended

Sep. 30, 2020

Sep. 30, 2019

Sep. 30, 2020

Sep. 30, 2019

$ 69

$ (228)

$ 57

$ (180)

Less: Other comprehensive income attributable to noncontrolling interest, pre-tax

^[1]

(202)

(157)

Less: Other comprehensive income, net from continuing operations attributable to noncontrolling interests

^[1]

Other Comprehensive Income (Loss), Net of Tax Attributable to Xerox Holdings/Xerox

^[1]

(203)

(158)

Translation adjustments gains (losses)

Accumulated Other Comprehensive Income (Loss) [Line Items]

176

(153)

(2)

(121)

Unrealized gains (losses)

179

(155)

(122)

Accumulated Other Comprehensive Income (Loss) [Line Items]

Other comprehensive income (loss), before reclassifications, pre-tax

Other comprehensive income (loss), before reclassifications, net of tax

Reclassifications, pre-tax

(3)

(1)

(6)

Reclassifications, net of tax

(3)

(5)

Net actuarial/prior service (losses) gains

Accumulated Other Comprehensive Income (Loss) [Line Items]

(77)

(126)

(162)

Prior service amortization

(58)

(95)

(122)

Accumulated Other Comprehensive Income (Loss) [Line Items]

(20)

(19)

(59)

Actuarial loss amortization / settlement

(15)

(14)

(44)

Accumulated Other Comprehensive Income (Loss) [Line Items]

104

123

Changes in defined benefit plans (losses) gains

Accumulated Other Comprehensive Income (Loss) [Line Items]

(108)

(76)

(63)

Changes in defined benefit plans (losses) gains | Fuji Xerox

(92)

(48)

(38)

Accumulated Other Comprehensive Income (Loss) [Line Items]

(3)

(1)

Accumulated Other Comprehensive Income (Loss) [Line Items]

(3)

(1)

Other (losses) gains

(42)

Other Comprehensive Income (Loss) Attributable to Xerox Holdings/Xerox

(42)

Accumulated Other Comprehensive Income (Loss) [Line Items]

Other Comprehensive Income (Loss) Attributable to Xerox Holdings/Xerox

(229)

(181)

Other Comprehensive Income (Loss), Net of Tax Attributable to Xerox Holdings/Xerox

$ 88

$ (203)

$ 53

$ (158)

[1]	Refer to Note 19 - Other Comprehensive Income (Loss) for gross components of Other comprehensive income (loss), net, reclassification adjustments out of Accumulated other comprehensive loss and related tax effects.

Other Comprehensive Income (Loss) - Accumulated Other Comprehensive Loss (AOCL) (Details) - USD ($) $ in Millions	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stockholders' equity	$ 5,452	$ 5,481	$ 5,594	$ 4,886	$ 4,992	$ 5,039
Cumulative translation adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stockholders' equity	(1,954)		(1,961)
Other unrealized gains (losses), net
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stockholders' equity	2		(2)
Benefit plans net actuarial losses and prior service credits
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stockholders' equity	(1,641)		(1,683)
Total Accumulated other comprehensive loss attributable to Xerox Holdings/Xerox
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stockholders' equity	$ (3,593)	$ (3,681)	$ (3,646)	$ (3,850)	$ (3,647)	$ (3,565)

Amount of stockholders' equity (deficit), net of receivables from officers, directors, owners, and affiliates of the entity, attributable to both the parent and noncontrolling interests. Amount excludes temporary equity. Alternate caption for the concept is permanent equity.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 45
-Paragraph 24
-URI http://asc.fasb.org/extlink&oid=115929471&loc=d3e21930-107793

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 830
-SubTopic 30
-Section 45
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=118261656&loc=d3e32136-110900

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 45
-Paragraph 23
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=115929471&loc=d3e21914-107793

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 7
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22644-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 10
-Section 65
-Paragraph 4
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121646688&loc=SL121648383-210437

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (f)(2)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 45
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=108774443&loc=SL4568740-111683

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 65
-Paragraph 15
-Subparagraph (f)(2)
-URI http://asc.fasb.org/extlink&oid=121322162&loc=SL121327923-165333

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4I
-URI http://asc.fasb.org/extlink&oid=120409616&loc=SL4590271-111686

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (f)(1)
-URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14064-108612

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 830
-SubTopic 30
-Section 45
-Paragraph 20
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=118261656&loc=d3e32211-110900

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 45
-Paragraph 5
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=115929471&loc=d3e21711-107793

Reference 15: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 45
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=108774443&loc=SL4568447-111683

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 65
-Paragraph 15
-Subparagraph (f)(1)
-URI http://asc.fasb.org/extlink&oid=121322162&loc=SL121327923-165333

Reference 17: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(3)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794

Reference 19: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 830
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6450520&loc=d3e32583-110901

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 65
-Paragraph 15
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121322162&loc=SL121327923-165333

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 65
-Paragraph 8
-Subparagraph (d)(2)

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 65
-Paragraph 8
-Subparagraph (d)(3)