0001770450-21-000013 | 10-K | XBRL Viewer


Document						Part of Form 10-K in which Incorporated
Xerox Holdings Corporation Notice of 2021 Annual Meeting of Shareholders and Proxy Statement (to be filed no later than 120 days after the close of the fiscal year covered by this report on Form 10-K)						III

Xerox Corporation

Entity Information [Line Items]

Entity Registrant Name

XEROX CORPORATION

Entity Incorporation, State or Country Code

Entity File Number

001-04471

Entity Tax Identification Number

16-0468020

Entity Well-known Seasoned Issuer

Yes

Entity Voluntary Filers

Entity Current Reporting Status

Yes

Entity Interactive Data Current

Yes

Entity Filer Category

Non-accelerated Filer

Entity Small Business

false

Entity Emerging Growth Company

false

ICFR Auditor Attestation Flag

true

Entity Shell Company

false

Consolidated Statements of Income - USD ($) $ in Millions	12 Months Ended
Consolidated Statements of Income - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Revenues
Total Revenues	$ 7,022	$ 9,066	$ 9,662
Costs and Expenses
Cost of financing	121	131	132
Research, development and engineering expenses	311	373	397
Selling, administrative and general expenses	1,851	2,085	2,379
Restructuring and related costs, net	93	229	157
Amortization of intangible assets	56	45	48
Transaction and related costs, net	18	12	68
Other expenses, net	45	84	271
Total Costs and Expenses	6,770	8,244	9,113
Income before Income Taxes and Equity Income	252	822	549
Income tax expense	64	179	247
Equity in net income of unconsolidated affiliates	4	8	8
Income from Continuing Operations	192	651	310
Income from discontinued operations, net of tax	0	710	64
Net Income	192	1,361	374
Less: Income from continuing operations attributable to noncontrolling interests	0	3	4
Less: Income from discontinued operations attributable to noncontrolling interests	0	5	9
Net Income Attributable to Xerox Holdings/Xerox	192	1,353	361
Income from continuing operations	192	648	306
Income from discontinued operations	$ 0	$ 705	$ 55
Basic Earnings per Share:
Continuing operations (in dollars per share)	$ 0.85	$ 2.86	$ 1.17
Discontinued operations (in dollars per share)	0	3.17	0.23
Total Basic Earnings per Share	0.85	6.03	1.40
Diluted Earnings per Share:
Continuing operations (in dollars per share)	0.84	2.78	1.16
Discontinued operations (in dollars per share)	0	3.02	0.22
Diluted Earnings per Share	$ 0.84	$ 5.80	$ 1.38
Sales
Revenues
Total Revenues	$ 2,449	$ 3,227	$ 3,454
Costs and Expenses
Cost of goods and services sold	1,742	2,097	2,188
Services, maintenance and rentals
Revenues
Total Revenues	4,347	5,595	5,940
Costs and Expenses
Cost of goods and services sold	2,533	3,188	3,473
Financing
Revenues
Total Revenues	226	244	268
Xerox Corporation
Revenues
Total Revenues	7,022	9,066	9,662
Costs and Expenses
Cost of financing	121	131	132
Research, development and engineering expenses	311	373	397
Selling, administrative and general expenses	1,850	2,085	2,379
Restructuring and related costs, net	93	229	157
Amortization of intangible assets	56	45	48
Transaction and related costs, net	18	12	68
Other expenses, net	45	84	271
Total Costs and Expenses	6,769	8,244	9,113
Income before Income Taxes and Equity Income	253	822	549
Income tax expense	64	179	247
Equity in net income of unconsolidated affiliates	4	8	8
Income from Continuing Operations	193	651	310
Income from discontinued operations, net of tax	0	710	64
Net Income	193	1,361	374
Less: Income from continuing operations attributable to noncontrolling interests	0	3	4
Less: Income from discontinued operations attributable to noncontrolling interests	0	5	9
Net Income Attributable to Xerox Holdings/Xerox	193	1,353	361
Income from continuing operations	193	648	306
Income from discontinued operations	0	705	55
Xerox Corporation \| Sales
Revenues
Total Revenues	2,449	3,227	3,454
Costs and Expenses
Cost of goods and services sold	1,742	2,097	2,188
Xerox Corporation \| Services, maintenance and rentals
Revenues
Total Revenues	4,347	5,595	5,940
Costs and Expenses
Cost of goods and services sold	2,533	3,188	3,473
Xerox Corporation \| Financing
Revenues
Total Revenues	$ 226	$ 244	$ 268

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

12 Months Ended

Dec. 31, 2020

Dec. 31, 2019

Dec. 31, 2018

Net Income

$ 192

$ 1,361

$ 374

Less: Income from continuing operations attributable to noncontrolling interests

Less: Income from discontinued operations attributable to noncontrolling interests

Net Income Attributable to Xerox Holdings/Xerox

192

1,353

361

Translation adjustments, net

^[1]

241

(242)

Unrealized gains (losses), net

^[1]

(6)

Changes in defined benefit plans, net

^[1]

(10)

409

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

^[1]

314

183

Comprehensive income, net

506

1,407

557

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

506

1,399

544

Xerox Corporation

Net Income

193

1,361

374

Less: Income from continuing operations attributable to noncontrolling interests

Less: Income from discontinued operations attributable to noncontrolling interests

Net Income Attributable to Xerox Holdings/Xerox

193

1,353

361

Translation adjustments, net

^[2]

241

(242)

Unrealized gains (losses), net

^[2]

(6)

Changes in defined benefit plans, net

^[2]

(10)

409

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

^[2]

314

183

Comprehensive income, net

507

1,407

557

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

$ 507

$ 1,399

$ 544

[1]	Refer to Note 25 - Other Comprehensive Income (Loss) for gross components of Other Comprehensive Income, reclassification adjustments out of Accumulated Other Comprehensive Loss and related tax effects.
[2]	Refer to Note 25 - Other Comprehensive Income (Loss) for gross components of Other Comprehensive Income, reclassification adjustments out of Accumulated Other Comprehensive Loss and related tax effects.

Consolidated Balance Sheets - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2020

Dec. 31, 2019

Assets

Cash and cash equivalents

$ 2,625

$ 2,740

Accounts receivable (net of allowance of $69 and $55, respectively)

^[1]

883

1,236

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

^[1]

111

Finance receivables, net

1,082

1,158

Inventories

843

694

Other current assets

251

201

Total current assets

5,783

6,140

Finance receivables due after one year (net of allowance of $129 and $86, respectively)

^[1]

1,984

2,082

Equipment on operating leases, net

296

364

Land, buildings and equipment, net

407

426

Intangible assets, net

237

199

Goodwill

4,071

3,900

Deferred tax assets

508

598

Other long-term assets

1,455

1,338

Total Assets

14,741

15,047

Liabilities and Equity

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

394

1,049

Accounts payable

983

1,053

Accrued compensation and benefits costs

261

349

Accrued expenses and other current liabilities

840

984

Total current liabilities

2,478

3,435

Long-term debt

4,050

3,233

Pension and other benefit liabilities

1,566

1,707

Post-retirement medical benefits

340

352

Other long-term liabilities

497

512

Total Liabilities

8,931

9,239

Commitments and Contingencies (See Note 21)

Convertible Preferred Stock

214

Common stock

198

215

Additional paid-in capital

2,445

2,782

Treasury stock, at cost

(76)

Retained earnings

6,281

6,312

Accumulated other comprehensive loss

(3,332)

(3,646)

Xerox Holdings/Xerox shareholders’ equity

5,592

5,587

Noncontrolling interests

Total Equity

5,596

5,594

Total Liabilities and Equity

$ 14,741

$ 15,047

Share of common stock issued

198,386,000

214,621,000

Treasure stock (shares)

(2,031,000)

Shares of common stock outstanding

198,386,000

212,590,000

Accounting Standards Update [Extensible List]

us-gaap:AccountingStandardsUpdate201613Member

Xerox Corporation

Assets

Cash and cash equivalents

$ 2,625

$ 2,740

Accounts receivable (net of allowance of $69 and $55, respectively)

^[2]

883

1,236

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

^[2]

111

Finance receivables, net

1,082

1,158

Inventories

843

694

Other current assets

251

201

Total current assets

5,783

6,140

Finance receivables due after one year (net of allowance of $129 and $86, respectively)

1,984

2,082

Equipment on operating leases, net

296

364

Land, buildings and equipment, net

407

426

Intangible assets, net

229

199

Goodwill

4,068

3,900

Deferred tax assets

508

598

Other long-term assets

1,455

1,338

Total Assets

14,730

15,047

Liabilities and Equity

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

394

1,049

Accounts payable

983

1,053

Accrued compensation and benefits costs

261

349

Accrued expenses and other current liabilities

750

918

Total current liabilities

2,388

3,369

Long-term debt

2,557

3,233

Pension and other benefit liabilities

1,566

1,707

Post-retirement medical benefits

340

352

Other long-term liabilities

494

512

Total Liabilities

7,345

9,173

Commitments and Contingencies (See Note 21)

Additional paid-in capital

4,879

3,266

Retained earnings

5,834

6,247

Accumulated other comprehensive loss

(3,332)

(3,646)

Xerox Holdings/Xerox shareholders’ equity

7,381

5,867

Noncontrolling interests

Total Equity

7,385

5,874

Total Liabilities and Equity

$ 14,730

$ 15,047

Share of common stock issued

100

Shares of common stock outstanding

100

Accounting Standards Update [Extensible List]

us-gaap:AccountingStandardsUpdate201613Member

[1]	Allowances at December 31, 2020 determined in accordance with ASU 2016-13 adopted effective January 1, 2020. Refer to Notes 1, 7 and 8 for additional information.
[2]	Allowances at December 31, 2020 determined in accordance with ASU 2016-13 adopted effective January 1, 2020. Refer to Notes 1, 7 and 8 for additional information.

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Billed portion of finance receivables, net	$ 4	$ 3
Allowance for finance receivables due after one year	129	86
Accounts Receivable
Allowance for accounts receivable	69	55
Xerox Corporation
Billed portion of finance receivables, net	4	3
Allowance for finance receivables due after one year	129	86
Xerox Corporation \| Accounts Receivable
Allowance for accounts receivable	$ 55	$ 69

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

12 Months Ended

Dec. 31, 2020

Dec. 31, 2019

Dec. 31, 2018

Cash Flows from Operating Activities

Net income

$ 192

$ 1,361

$ 374

Income from discontinued operations, net of tax

(710)

(64)

Income from continuing operations

192

651

310

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

Depreciation and amortization

368

430

526

Provisions

147

Deferred tax expense

124

135

Net gain on sales of businesses and assets

(30)

(21)

(35)

Stock-based compensation

Restructuring and asset impairment charges

127

156

Payments for restructurings

(81)

(93)

(169)

Defined benefit pension cost

109

175

Contributions to defined benefit pension plans

(139)

(141)

(144)

Decrease in accounts receivable and billed portion of finance receivables

369

(Increase) decrease in inventories

(134)

109

Increase in equipment on operating leases

(118)

(153)

(248)

Decrease in finance receivables

183

101

166

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

(14)

(Decrease) increase in accounts payable

(123)

(47)

Decrease in accrued compensation

(189)

(94)

(111)

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

(165)

Net change in income tax assets and liabilities

(2)

(34)

Net change in derivative assets and liabilities

(14)

Other operating, net

Net cash provided by operating activities of continuing operations

548

1,244

1,082

Net cash provided by operating activities of discontinued operations

Net cash provided by operating activities

548

1,333

1,140

Cash Flows from Investing Activities

Cost of additions to land, buildings, equipment and software

(74)

(65)

(90)

Proceeds from sales of businesses and assets

Acquisitions, net of cash acquired

(203)

(42)

Other investing, net

Net cash used in investing activities of continuing operations

(246)

(85)

(29)

Net cash provided by investing activities of discontinued operations

2,233

Net cash (used in) provided by investing activities

(246)

2,148

(29)

Cash Flows from Financing Activities

Net payments on short-term debt

(5)

Proceeds from issuance of long-term debt

2,359

Payments on long-term debt

(2,226)

(960)

(311)

Dividends

(230)

(243)

(269)

Payments to acquire treasury stock, including fees

(300)

(600)

(700)

Other financing, net

(19)

(41)

(25)

Net cash used in financing activities

(416)

(1,834)

(1,301)

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

(30)

(Decrease) increase in cash, cash equivalents and restricted cash

(104)

1,647

(220)

Cash, cash equivalents and restricted cash at beginning of year

2,795

^[1]

1,148

^[1]

1,368

Cash, Cash Equivalents and Restricted Cash at End of Year

^[1]

2,691

2,795

1,148

Xerox Corporation

Cash Flows from Operating Activities

Net income

193

1,361

374

Income from discontinued operations, net of tax

(710)

(64)

Income from continuing operations

193

651

310

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

Depreciation and amortization

368

430

526

Provisions

147

Deferred tax expense

124

135

Net gain on sales of businesses and assets

(30)

(21)

(35)

Stock-based compensation

Restructuring and asset impairment charges

127

156

Payments for restructurings

(81)

(93)

(169)

Defined benefit pension cost

109

175

Contributions to defined benefit pension plans

(139)

(141)

(144)

Decrease in accounts receivable and billed portion of finance receivables

369

(Increase) decrease in inventories

(134)

109

Increase in equipment on operating leases

(118)

(153)

(248)

Decrease in finance receivables

183

101

166

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

(14)

(Decrease) increase in accounts payable

(123)

(47)

Decrease in accrued compensation

(189)

(94)

(111)

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

(166)

Net change in income tax assets and liabilities

(2)

(34)

Net change in derivative assets and liabilities

(14)

Other operating, net

Net cash provided by operating activities of continuing operations

548

1,244

1,082

Net cash provided by operating activities of discontinued operations

Net cash provided by operating activities

548

1,333

1,140

Cash Flows from Investing Activities

Cost of additions to land, buildings, equipment and software

(74)

(65)

(90)

Proceeds from sales of businesses and assets

Acquisitions, net of cash acquired

(194)

(42)

Other investing, net

Net cash used in investing activities of continuing operations

(237)

(85)

(29)

Net cash provided by investing activities of discontinued operations

2,233

Net cash (used in) provided by investing activities

(237)

2,148

(29)

Cash Flows from Financing Activities

Net payments on short-term debt

(5)

Proceeds from issuance of long-term debt

852

Payments on long-term debt

(2,213)

(960)

(311)

Dividends

(181)

(269)

Payments to acquire treasury stock, including fees

(300)

(700)

Contributions from parent

1,494

Distributions to parent

(558)

(373)

Other financing, net

(30)

(25)

Net cash used in financing activities

(425)

(1,834)

(1,301)

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

(30)

(Decrease) increase in cash, cash equivalents and restricted cash

(104)

1,647

(220)

Cash, cash equivalents and restricted cash at beginning of year

2,795

^[2]

1,148

^[2]

1,368

Cash, Cash Equivalents and Restricted Cash at End of Year

^[2]

$ 2,691

$ 2,795

$ 1,148

[1]	Balance at December 31, 2018 includes $3 associated with discontinued operations.
[2]	Balance at December 31, 2018 includes $3 associated with discontinued operations.

Consolidated Statements of Cash Flows (Parenthetical) $ in Millions	Dec. 31, 2018 USD ($)
Cash, cash equivalents and restricted cash associated with discontinued operations	$ 3
Xerox Corporation
Cash, cash equivalents and restricted cash associated with discontinued operations	$ 3

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

Total

Cumulative Effect, Period of Adoption, Adjustment

Xerox Holdings Shareholders' Equity

Cumulative Effect, Period of Adoption, Adjustment

Common Stock

Additional Paid-in Capital

Treasury Stock

Retained Earnings

Cumulative Effect, Period of Adoption, Adjustment

AOCL

Cumulative Effect, Period of Adoption, Adjustment

Noncontrolling Interests

Xerox Corporation

Cumulative Effect, Period of Adoption, Adjustment

Xerox Corporation

Xerox Holdings Shareholders' Equity

Xerox Corporation

Xerox Holdings Shareholders' Equity

Cumulative Effect, Period of Adoption, Adjustment

Xerox Corporation

Common Stock

Xerox Corporation

Additional Paid-in Capital

Xerox Corporation

Treasury Stock

Xerox Corporation

Retained Earnings

Xerox Corporation

Retained Earnings

Cumulative Effect, Period of Adoption, Adjustment

Xerox Corporation

AOCL

^[3]

Xerox Corporation

AOCL

Cumulative Effect, Period of Adoption, Adjustment

^[3],[6]

Xerox Corporation

Noncontrolling Interests

Beginning Balance at Dec. 31, 2017

$ 5,256

$ 120

^[1]

$ 255

$ 3,893

$ 0

$ 4,856

$ 120

^[1]

$ (3,748)

$ 120

^[2]

$ 5,256

$ 120

^[2]

$ 255

$ 3,893

$ 0

$ 4,856

$ 120

^[2]

$ (3,748)

Noncontrolling Interests Beginning Balance at Dec. 31, 2017

$ 37

Total Equity Beginning Balance at Dec. 31, 2017

$ 5,293

$ 120

^[1]

$ 5,293

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

Comprehensive income (loss), net attributable to Xerox Holding/Xerox

544

361

183

544

361

183

Comprehensive income (loss), net attributable to noncontrolling interest

(13)

Comprehensive income, net

557

Cash dividends declared-common

^[4]

(251)

Cash dividends declared-preferred

^[5]

(14)

Stock option and incentive plans, net

Payments to acquire treasury stock, including fees

(700)

Cancellation of treasury stock

(24)

(621)

645

(24)

(621)

645

Distributions to noncontrolling interests

(16)

Ending Balance at Dec. 31, 2018

5,005

$ 0

232

3,321

(55)

5,072

$ 127

(3,565)

$ (127)

$ 0

^[6]

5,005

$ 0

^[6]

232

3,321

(55)

5,072

$ 127

^[6]

(3,565)

$ (127)

Noncontrolling Interests Ending Balance at Dec. 31, 2018

Total Equity Ending Balance at Dec. 31, 2018

5,039

$ 0

5,039

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

Comprehensive income (loss), net attributable to Xerox Holding/Xerox

1,399

1,353

1,399

1,353

Comprehensive income (loss), net attributable to noncontrolling interest

(8)

Comprehensive income, net

1,407

Cash dividends declared-common

^[4]

(226)

(115)

Cash dividends declared-preferred

^[5]

(14)

(7)

Dividends declared to parent

(183)

Transfers (to) from parent

(175)

Stock option and incentive plans, net

Payments to acquire treasury stock, including fees

(600)

(300)

Cancellation of treasury stock

(18)

(561)

579

(11)

(344)

355

Distributions to noncontrolling interests

(3)

Reorganization

225

(221)

446

Divestiture

(32)

^[7]

(32)

^[7]

^[8]

Ending Balance at Dec. 31, 2019

5,587

215

2,782

(76)

6,312

(3,646)

5,867

3,266

6,247

(3,646)

Noncontrolling Interests Ending Balance at Dec. 31, 2019

Total Equity Ending Balance at Dec. 31, 2019

5,594

5,874

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

Comprehensive income (loss), net attributable to Xerox Holding/Xerox

506

192

314

507

193

314

Comprehensive income (loss), net attributable to noncontrolling interest

Comprehensive income, net

506

507

Cash dividends declared-common

^[4]

(209)

Cash dividends declared-preferred

^[5]

(14)

Dividends declared to parent

(606)

^[5]

Capital contributions from parent

^[9]

1,494

Transfers (to) from parent

119

Stock option and incentive plans, net

Payments to acquire treasury stock, including fees

(300)

Cancellation of treasury stock

(18)

(358)

376

Distributions to noncontrolling interests

(3)

Ending Balance at Dec. 31, 2020

5,592

$ 5,592

$ 198

$ 2,445

$ 0

$ 6,281

$ (3,332)

7,381

$ 7,381

$ 0

$ 4,879

$ 0

$ 5,834

$ (3,332)

Noncontrolling Interests Ending Balance at Dec. 31, 2020

$ 4

Total Equity Ending Balance at Dec. 31, 2020

$ 5,596

$ 7,385

[1]	Includes $117 related to the adoption of the Revenue Recognition Standard ASU 2014-09 - Revenue from Contracts with Customers (ASC Topic 606), see Note 1 - Basis of Presentation and Summary of Significant Accounting Policies, and $3 related to our share of Fuji Xerox's adoption of ASU 2016-01 - Financial Instruments - Classification and Measurement.
[2]	Includes $117 related to the adoption of the Revenue Recognition Standard ASU 2014-09 - Revenue from Contracts with Customers (ASC Topic 606), see Note 1 - Basis of Presentation and Summary of Significant Accounting Policies, and $3 related to our share of Fuji Xerox's adoption of ASU 2016-01 - Financial Instruments - Classification and Measurement.
[3]	AOCL - Accumulated other comprehensive loss.
[4]	Cash dividends declared on common stock for 2020, 2019 and 2018 were $0.25 per share on a quarterly basis and $1.00 per share on an annual basis.
[5]	Cash dividends declared on preferred stock for 2020, 2019 and 2018 were $20 per share on a quarterly basis and $80 per share on an annual basis.
[6]	Refer to Note 1 - Basis of Presentation and Summary of Significant Accounting Policies - Income Taxes for additional information related to the adoption of ASU 2018-02.
[7]	Refer to Note 1 - Basis of Presentation and Summary of Significant Accounting Policies and Note 6 - Divestitures for additional information regarding divestitures.
[8]	Refer to Note 1 - Basis of Presentation and Summary of Significant Accounting Policies and Note 6 - Divestitures for additional information regarding divestitures.
[9]	Primarily represents the contribution by Xerox Holdings Corporation of aggregate net debt proceeds received from its Senior Notes offerings in the third quarter of 2020 to Xerox Corporation. Refer to Note 16 - Debt for additional information regarding the Senior Notes offerings.

Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Millions	3 Months Ended												12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Revenues															$ 117
Accounting Standards Update [Extensible List]													us-gaap:AccountingStandardsUpdate201613Member
Dividends per common share (in dollars per share)	$ 0.25	$ 0.25	$ 0.25	$ 0.25	$ 0.25	$ 0.25	$ 0.25	$ 0.25	$ 0.25	$ 0.25	$ 0.25	$ 0.25	$ 1.00	$ 1.00	$ 1.00
Dividends per preferred share (in dollars per share)	$ 20	$ 20	$ 20	$ 20	$ 20	$ 20	$ 20	$ 20	$ 20	$ 20	$ 20	$ 20	$ 80	$ 80	$ 80
Xerox Corporation
Revenues															$ 117
Accounting Standards Update [Extensible List]													us-gaap:AccountingStandardsUpdate201613Member

- Definition

Indicates amendment to accounting standards.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
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- Definition

Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).

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Basis of Presentation and Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2020
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	Basis of Presentation and Summary of Significant Accounting Policies 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. References to “Xerox Holdings Corporation” refer to the stand-alone parent company and do not include its subsidiaries. References to “Xerox Corporation” refer to the stand-alone company and do not include subsidiaries. The accompanying Consolidated Financial Statements and footnotes represent the respective consolidated results and financial results of Xerox Holdings and Xerox and all respective subsidiaries 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 Consolidated Financial Statements for each registrant. The accompanying Consolidated Financial Statements of both Xerox Holdings and Xerox have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). Notes to the Consolidated Financial Statements reflect the activity for both Xerox Holdings and Xerox for all periods presented, unless otherwise noted. Description of Business Currently, Xerox Holdings' primary direct operating subsidiary is Xerox and Xerox represents nearly all of Xerox Holdings' operations. Xerox is a global enterprise for document management solutions. We provide advanced document technology, services, software and genuine Xerox supplies for a range of customers including small and mid-size businesses, large enterprises, governments and graphic communications providers, and for our partners who serve them. We operate in approximately 160 countries worldwide. Xerox Holdings' other direct operating subsidiary is CareAR, a small SaaS solutions provider, which was acquired for $9 in 2020. Basis of Consolidation All significant intercompany accounts and transactions have been eliminated. Investments in business entities in which we do not have control, but we have the ability to exercise significant influence over operating and financial policies (generally 20% to 50% ownership) are accounted for using the equity method of accounting. Operating results of acquired businesses are included in the Consolidated Statements of Income from the date of acquisition. We consolidate variable interest entities if we are deemed to be the primary beneficiary of the entity. Operating results for variable interest entities in which we are determined to be the primary beneficiary are included in the Consolidated Statements of Income from the date such determination is made. For convenience and ease of reference, we refer to the financial statement caption “Income before Income Taxes and Equity Income” as “pre-tax income” throughout the Notes to the Consolidated Financial Statements. Discontinued Operations 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 of FX and XIP 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. The accompanying Notes to the Consolidated Financial Statements have all been revised to reflect the effect of the Sales and all prior year balances have been revised accordingly to reflect continuing operations only. The historical statements of Comprehensive Income and Shareholders' Equity have not been revised to reflect the Sales and instead reflect the Sales as an adjustment to the balances at December 31, 2019. Refer to Note 6 - Divestitures for additional information regarding discontinued operations. Prior Period Adjustments In 2018, we determined that the Projected Benefit Obligation (PBO) for our U.K. funded pension plan at December 31, 2017 was overstated by approximately GBP 40 million (approximately USD $53 or $43 after-tax). The error was the result of the plan administrator under-reporting benefit payments. The correction of the PBO was recorded as an out-of-period adjustment in 2018 with the offset to the balance sheet recorded as a credit to Changes in defined benefit plans, net in Other comprehensive income for the period. We assessed the impact of this error and concluded that it was not material to the financial statements previously issued for any interim or annual period and the correction was not material to the annual financial statements for 2018. Use of Estimates The preparation of our Consolidated Financial Statements requires that we make estimates and assumptions that affect the reported amounts of assets and liabilities, as well as the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Future events and their effects cannot be predicted with certainty; accordingly, our accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of our Consolidated Financial Statements will change as new events occur, as more experience is acquired, as additional information is obtained and as our operating environment changes. Our estimates are based on management's best available information including current events, historical experience, actions that the company may undertake in the future and on various other assumptions that are believed to be reasonable under the circumstances. As a result, actual results may be different from these estimates. In the ordinary course of accounting for the items discussed above, we make changes in estimates as appropriate and as we become aware of new or revised circumstances surrounding those estimates. Such changes and refinements in estimation methodologies are reflected in reported results of operations in the period in which the changes are made and, if material, their effects are disclosed in the Notes to the Consolidated Financial Statements and in Management's Discussion and Analysis of Financial Condition and Results of Operations. As of December 31, 2020, the impact of the COVID-19 pandemic 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. New Accounting Standards and Accounting Changes Except for the Accounting Standard Updates (ASUs) discussed below, the new ASUs issued by the FASB during the last two years did not have any significant impact on the Company. 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 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 and subsequent amendments on reference rate reform, 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, cash flows or disclosures. Accounting Standard Updates Recently Adopted: 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), discussed below, 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. Through September 30, 2020 we provided rent deferrals as a Lessor that were primarily offered to customers with sales type lease receivables. This special program was discontinued in the fourth quarter. 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. Through September 30, 2020, we approved payment deferrals of up to 3 months for approximately $33 or approximately 1% of our total finance receivable portfolio. 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 2020 were material, individually or in the aggregate. On January 1, 2019, we adopted ASU 2016-02, Leases (ASC Topic 842). This update, as well as additional amendments and targeted improvements issued in 2018 and early 2019, supersedes existing lease accounting guidance found under ASC 840, Leases (ASC 840) and requires the recognition of right-to-use assets and lease obligations by lessees for those leases originally classified as operating leases under prior lease guidance. Effective with the adoption, leases are classified as either finance or operating, with classification affecting the pattern of expense recognition. Short-term leases with a term of 12 months or less are not required to be recognized. The update also requires qualitative and quantitative disclosure of key information regarding the amount, timing and uncertainty of cash flows arising from leasing arrangements to increase transparency and comparability among companies. The accounting for lessors does not fundamentally change with this update except for changes to conform and align guidance to the lessee guidance, as well as to the revenue recognition guidance in ASU 2014-09. Some of these conforming changes, such as those related to the definition of lease term and minimum lease payments, resulted in certain lease arrangements, that would have been previously accounted for as operating leases, to be classified and accounted for as sales-type leases with a corresponding up-front recognition of equipment sales revenue. Upon adoption, we applied the transition option, whereby prior comparative periods are not retrospectively presented in the Consolidated Financial Statements. We also elected the package of practical expedients not to reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs and the lessee practical expedient to combine lease and non-lease components for certain asset classes (real estate lease arrangements for offices and warehouses). Additionally, we made a policy election to not recognize right-of-use assets and lease liabilities for short-term leases for all asset classes. We elected the package of practical expedients from both the Lessee and Lessor prospective, to the extent applicable. Lessee accounting - the adoption of this update resulted in an increase to assets and related liabilities of approximately $385 (approximately $440 undiscounted) primarily related to leases of facilities. Refer to Note 11 - Lessee for additional information related to our lessee accounting. Lessor accounting - the adoption of this update resulted in an increase to equipment sales by approximately $30 in 2019 as compared to 2018. Refer to Note 4 - Lessor for additional information related to our lessor accounting. 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 7 - Accounts Receivable, Net and Note 8 - Finance Receivables, 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. Income Taxes In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. We adopted ASU 2018-02 effective for our fiscal year beginning January 1, 2019 and upon adoption reclassified $127 from Accumulated other comprehensive loss (AOCL) to Retained earnings related to the stranded tax effects resulting from the Tax Cuts and Jobs Act (Tax Act) enacted in December 2017. The reclassification was primarily related to the stranded tax effects associated with amounts in AOCL from our retirement-related benefit plans. Accordingly, the adoption of this update eliminated the stranded tax effects resulting from the Tax Act. However, because the update only relates to the reclassification of the income tax effects of the Tax Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in Income from continuing operations is not affected. Revenue Recognition On January 1, 2018, we adopted ASU 2014-09, Revenue from Contracts with Customers (ASC Topic 606), which superseded nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASC Topic 606 is to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASC Topic 606 defines a five-step process to recognize revenue and requires more judgment and estimates within the revenue recognition process than required under previous U.S. GAAP, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. We adopted this standard using the modified retrospective method of adoption and therefore we did not revise periods prior to adoption (e.g. 2017). Under ASC Topic 606, based on the nature of our contracts and consistent with prior practice, we recognize revenue upon invoicing the customer for the large majority of our revenue. Additionally, the unit of accounting, that is, the identification of performance obligations, is consistent with prior revenue recognition practice. Accordingly, the adoption of this standard did not have a material impact on the large majority of our revenues. A significant portion of our Equipment sales are either recorded as sales-type leases or through direct sales to distributors and resellers and these revenue streams are not impacted by the adoption of ASC Topic 606. The only change of significance identified in our adoption involves a change in the classification of certain revenues that were previously reported in Services revenues. These revenues relate to certain analyst services performed in connection with the installation of equipment that are being considered part of the equipment sale performance obligation effective beginning January 1, 2018. Accordingly, these revenues are now reported as part of Sales. Another change identified upon adoption was with respect to deferred contract costs, which include incremental costs of obtaining a contract and costs to fulfill a contract. Deferred contract costs had been minimal under our prior practices as most costs to obtain a contract and fulfill a contract were expensed as incurred. However, as a result of the contract cost guidance included in ASC Topic 606 and ASC Topic 340-40 "Contracts with Customers", upon adoption on January 1, 2018, we recorded a transition asset of $153, and a net of tax increase of $117 to Retained earnings, related to the incremental cost to obtain contracts. Substantially all of this adjustment is related to the deferral of sales commissions paid to sales people and agents in connection with the placement of equipment with post sale service arrangements. The impact to the Statement of Income from this change is not material. Other Updates The FASB also issued the following Accounting Standards Updates, which have not had, and are not expected to have, a material impact on our financial condition, results of operations or cash flows upon adoption. Those updates are as follows: •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. •Compensation - Retirement Benefits - Defined Benefit Plans - General: ASU 2018-14, (Topic 715-20) Changes to the Disclosure Requirements for Defined Benefit Plans. We elected to early adopt this update effective for our fiscal year ended December 31, 2019. Refer to Note 19 - Employee Benefit Plans for changes in the disclosures for our Defined Benefit Plans. •Fair Value Measurement: ASU 2018-13, (Topic 820) Disclosure Framework. This update was effective for our fiscal year beginning January 1, 2020. Summary of Accounting Policies Revenue Recognition We generate revenue through the sale of equipment, supplies and maintenance and printing services. Revenue is measured based on consideration specified in a contract with a customer and is recognized when we satisfy a performance obligation by transferring control of a product to a customer or in the period the customer benefits from the service. With the exception of our sales-type lease arrangements, our invoices to the customer, which normally have short-term payment terms, are typically aligned to the transfer of goods or as services are rendered to our customers and therefore in most cases we recognize revenue based on our right to invoice customers. As a result of the application of this practical expedient for the substantial portion of our revenue, the disclosure of the value of unsatisfied performance obligations for our services is not required. Significant judgments primarily include the identification of performance obligations in our Document management services arrangements as well the pattern of delivery for those services. More specifically, revenue related to our products and services is generally recognized as follows: Equipment: Revenues from the sale of equipment directly to end customers, including those from sales-type leases (see below), are recognized when obligations under the terms of a contract with our customer are satisfied and control has been transferred to the customer. For equipment placements that require us to install the product at the customer location, revenue is normally recognized when the equipment has been delivered and installed at the customer location. Sales of customer installable products are recognized upon shipment or receipt by the customer according to the customer's shipping terms. Revenue from the equipment performance obligation also includes certain analyst training services performed in connection with the installation or delivery of the equipment. Maintenance services: We provide maintenance agreements on our equipment that include service and supplies for which the customer may pay a base minimum plus a price-per-page charge for usage. In arrangements that include minimums, those minimums are normally set below the customer’s estimated page volumes and are not considered substantive. These agreements are sold as part of a bundled lease arrangement or through distributors and resellers. We normally account for these maintenance agreements as a single performance obligation for printing services being delivered in a series with delivery being measured by usage as billed to the customer. Accordingly, revenue on these agreements are normally recognized as billed to the customer over the term of the agreements based on page volumes. A substantial portion of our products are sold with full service maintenance agreements, accordingly, other than the product warranty obligations associated with certain of our entry level products, we do not have any significant warranty obligations, including any obligations under customer satisfaction programs. Document management services: Revenues associated with our document management services are generally recognized as printing services are rendered, which is generally on the basis of the number of images produced. Revenues on unit-price contracts are recognized at the contractual selling prices as work is completed by the customer. We account for these arrangements as a single performance obligation for printing services being delivered in a series with delivery being measured by usage as billed to the customer. Our services contracts may also include the sale or lease of equipment and software. In these instances, we follow the policies noted for Equipment or Software Revenues and separately report the revenue associated with these performance obligations. Certain document management services arrangements may also include an embedded lease of equipment. In these instances, the revenues associated with the lease are recognized in accordance with the requirements for lease accounting. Sales to distributors and resellers: We utilize distributors and resellers to sell our equipment, supplies and maintenance services to end-user customers. We refer to our distributor and reseller network as our two-tier distribution model. Revenues on sales to distributors and resellers are generally recognized when products are shipped to such distributors and resellers. However, revenue is only recognized when the distributor or reseller has economic substance apart from the Company such that collectability is probable and we have no further obligations related to bringing about the resale, delivery or installation of the product that would impact transfer of control. Revenues associated with maintenance agreements sold through distributors and resellers to end customers are recognized in a consistent manner for maintenance services. Revenue that may be subject to a reversal of revenue due to contractual terms or uncertainties is not recorded as revenue until the contractual provisions lapse or the uncertainties are resolved. Distributors and resellers participate in various rebate, price-protection, cooperative marketing and other programs. We estimate the variable consideration associated with these programs and record those amounts as a reduction to revenue when the sales occur. Similarly, we account for our estimates of sales returns and other allowances when the sales occur based on our historical experience. In certain instances, we may provide lease financing to end-user customers who purchased equipment we sold to distributors or resellers. We are not obligated to provide financing and we compete with other third-party leasing companies with respect to the lease financing provided to these end-user customers. Software: Most of our equipment has both software and non-software components that function together to deliver the equipment's essential functionality and therefore they are accounted for together as part of Equipment sales revenues. Software accessories sold in connection with our Equipment sales, as well as free-standing software sales, are accounted for as separate performance obligations if determined to be material in relation to the overall arrangement. Revenue from software is not a significant component of our Total revenues. Supplies: Supplies revenue is recognized upon transfer of control to the customer, generally upon utilization or shipment to the customer in accordance with the sales contract terms. Financing: Finance income attributable to sales-type leases, direct financing leases and installment loans is recognized on the accrual basis using the effective interest method. Bundled Lease Arrangements: A significant portion of our direct sales of equipment to end customers are made through bundled lease arrangements that typically include equipment, maintenance and financing components for which the customer pays a single negotiated fixed minimum monthly payment for all elements over the contractual lease term. These arrangements also typically include an incremental, variable component for page volumes in excess of contractual page volume minimums, which are often expressed in terms of price-per-page. The fixed minimum monthly payments are multiplied by the number of months in the contract term to arrive at the total fixed minimum payments that the customer is obligated to make (fixed payments) over the lease term. In applying our lease accounting methodology, we only consider the fixed payments for purposes of allocating to the relative fair value elements of the contract. Revenues under bundled arrangements are allocated considering the relative standalone selling prices of the lease and non-lease deliverables included in the bundled arrangement. Lease deliverables include the equipment, financing, maintenance and other executory costs, while non-lease deliverables generally consist of the supplies and non-maintenance services. The allocation for the lease deliverables begins by allocating revenues to the maintenance and other executory costs plus a profit thereon. These elements are generally recognized over the term of the lease as service revenue. The remaining amounts are allocated to the equipment and financing elements, which are subjected to the accounting estimates noted below under “Leases”. Leases: The two primary lease accounting provisions we assess for the classification of transactions as sales-type or operating leases are: (1) a review of the lease term to determine if it is equal to or greater than 75% of the economic life of the equipment and (2) a review of the present value of the minimum lease payments to determine if they are equal to or greater than 90% of the fair market value of the equipment at the inception of the lease. Equipment placements included in arrangements meeting these conditions are accounted for as sales-type leases and revenue is recognized as noted above for Equipment. Equipment placements included in arrangements that do not meet these conditions are accounted for as operating leases and revenue is recognized over the term of the lease. We consider the economic life of most of our products to be five years, since this represents the most frequent contractual lease term for our principal products and only a small percentage of our leases are for original terms longer than five years. There is no significant after-market for our used equipment. We believe five years is representative of the period during which the equipment is expected to be economically usable, with normal service, for the purpose for which it is intended. Residual values are not significant. With respect to fair value, we perform an analysis of equipment fair value based on cash selling prices during the applicable period. The cash selling prices are compared to the range of values determined for our leases. The range of cash selling prices must be reasonably consistent with the lease selling prices in order for us to determine that such lease prices are indicative of fair value. Our lease pricing interest rates, which are used in determining customer payments in a bundled lease arrangement, are developed based upon a variety of factors including local prevailing rates in the marketplace and the customer’s credit history, industry and credit class. We reassess our pricing interest rates quarterly based on changes in the local prevailing rates in the marketplace. These interest rates have generally been adjusted if the rates vary by 25 basis points or more, cumulatively, from the rate last in effect. The pricing interest rates generally equal the implicit rates within the leases, as corroborated by our comparisons of cash to lease selling prices. Note: The above two revenue recognition policies apply to 2018 only and were updated as a result of our adoption of ASC Topic 842 effective January 1, 2019. Refer to Note 4 - Lessor for the updated policies. Other Revenue Recognition Policies Revenue-based Taxes: Revenue-based taxes assessed by governmental authorities that are both imposed on and concurrent with specific revenue-producing transactions, and that are collected by the Company from a customer, are excluded from revenue. The primary revenue-based taxes are sales tax and value-added tax (VAT). Shipping and Handling: Shipping and handling costs are accounted for as a fulfillment cost and are included in Cost of sales in the Consolidated Statements of Income. Refer to Note 2 - Revenue for additional information regarding revenue recognition policies with respect to contract assets and liabilities as well as contract costs. Other Significant Accounting Policies Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, including money market funds, and investments with original maturities of three months or less. Receivable Sales We transfer certain portions of our receivable portfolios and normally account for those transfers as sales based on meeting the criteria for derecognition in accordance with ASC Topic 860 "Transfer and Servicing" of Financial Assets. Gains or losses on the sale of receivables depend, in part, on both (a) the cash proceeds and (b) the net non-cash proceeds received or paid. When we sell receivables, we normally receive beneficial interests in the transferred receivables from the purchasers as part of the proceeds. We may refer to these beneficial interests as a deferred purchase price. The beneficial interests obtained are initially measured at their fair value. We generally estimate fair value based on the present value of expected future cash flows, which are calculated using management's best estimates of the key assumptions including credit losses, prepayment rate and discount rates commensurate with the risks involved. Refer to Note 7 - Accounts Receivable, Net for additional information on our receivable sales. Inventories Inventories are carried at the lower of average cost or net realizable value. Inventories also include equipment that is returned at the end of the lease term. Returned equipment is recorded at the lower of remaining net book value or salvage value, which is normally not significant. We regularly review inventory quantities and record a provision for excess and/or obsolete inventory based primarily on our estimated forecast of product demand, production requirements and servicing commitments. Several factors may influence the realizability of our inventories, including our decision to exit a product line, technological changes and new product development. The provision for excess and/or obsolete raw materials and equipment inventories is based primarily on near-term forecasts of product demand and include consideration of new product introductions, as well as changes in remanufacturing strategies. The provision for excess and/or obsolete service parts inventory is based primarily on projected servicing requirements over the life of the related equipment populations. Refer to Note 9 - Inventories and Equipment on Operating Leases, Net for further discussion. Land, Buildings and Equipment on Operating Leases Land, buildings and equipment are recorded at cost. Buildings and equipment are depreciated over their estimated useful lives. Leasehold improvements are depreciated over the shorter of the lease term or the estimated useful life. Equipment on operating leases is depreciated to estimated salvage value over the lease term. Depreciation is computed using the straight-line method. Significant improvements are capitalized and maintenance and repairs are expensed. Refer to Note 9 - Inventories and Equipment on Operating Leases, Net and Note 10 - Land, Buildings, Equipment and Software, Net for further discussion. Leased Assets We lease buildings and equipment, substantially all of which are accounted for as operating leases. Refer to Note 11- Lessee for accounting policies with respect to leased assets and the adoption of ASC Topic 842. Software - Internal Use and Product We capitalize direct costs associated with developing, purchasing or otherwise acquiring software for internal use and amortize these costs on a straight-line basis over the expected useful life of the software, beginning when the software is implemented (Internal Use Software). Costs incurred for upgrades and enhancements that will not result in additional functionality are expensed as incurred. Amounts expended for Internal Use Software are included in Cash Flows from Investing. We also capitalize certain costs related to the development of software solutions to be sold to our customers upon reaching technological feasibility (Product Software). These costs are amortized on a straight-line basis over the estimated economic life of the software. Amounts expended for Product Software are included in Cash Flows from Operations. We perform periodic reviews to ensure that unamortized Product Software costs remain recoverable from estimated future operating profits (net realizable value or NRV). Costs to support or service licensed software are charged to Costs of services as incurred. Refer to Note 10 - Land, Buildings, Equipment and Software, Net for further information. Goodwill and Other Intangible Assets Goodwill represents the excess of the purchase price over the fair value of acquired net assets in a business combination, including the amount assigned to identifiable intangible assets. The primary drivers that generate goodwill are the value of synergies between the acquired entities and the company and the acquired assembled workforce, neither of which qualifies as an identifiable intangible asset. Goodwill is not amortized, but rather is tested for impairment annually, or more frequently whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable and an impairment loss may have been incurred. We normally assess goodwill for impairment at least annually, during the fourth quarter based on balances as of October 1st, and more frequently if indicators of impairment exist or if a decision is made to sell or exit a business. Impairment testing for goodwill is done at the reporting unit level. A reporting unit is an operating segment or one level below an operating segment (a component) if the component constitutes a business for which discrete financial information is available, and segment management regularly reviews the operating results of that component. Consistent with the determination that we had one operating segment, we determined that there is one reporting unit and tested goodwill for impairment at the entity level. We perform an assessment of goodwill, utilizing either a qualitative or quantitative impairment test. The qualitative impairment test assesses several factors to determine whether it is more likely than not that the fair value of the entity is less than its carrying amount. If we conclude it is more likely than not that the fair value of the entity is less than its carrying amount, a quantitative fair value test is performed. In certain circumstances, we may also bypass the qualitative test and proceed directly to a quantitative impairment test. In a quantitative impairment test, we assess goodwill by comparing the carrying amount of the entity to its fair value. Fair value of the entity is determined by using a weighted combination of an income approach and a market approach. If the fair value exceeds the carrying value, goodwill is not considered impaired. If the carrying value exceeds the fair value, goodwill is considered impaired and we would recognize an impairment loss for the excess. In the second quarter 2020, as a result of the continued negative financial impacts from the COVID-19 pandemic on our 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, we determined there was a triggering event requiring an interim quantitative evaluation of Goodwill. After completing our interim impairment review, we concluded that Goodwill was not impaired in the second quarter 2020. Although business performance improved in the second half of 2020, the COVID-19 pandemic continued to have a significant impact on the Company’s revenues, expenses, cash flows and market capitalization in 2020. As result of these impacts as well as related macroeconomic and industry factors we elected to utilize a quantitative model for the assessment of the recoverability of our goodwill balance for our annual fourth quarter 2020 impairment test. After completing our annual quantitative impairment review in the fourth quarter 2020, we concluded that Goodwill was not impaired. Other intangible assets primarily consist of assets obtained in connection with business acquisitions, including installed customer base and distribution network relationships, existing technology, trademarks and non-compete agreements. We apply an impairment evaluation whenever events or changes in business circumstances indicate that the carrying value of our intangible assets may not be recoverable. Other intangible assets are amortized on a straight-line basis over their estimated economic lives. We believe that the straight-line method of amortization reflects an appropriate allocation of the cost of the intangible assets to earnings in proportion to the amount of economic benefits obtained annually by the Company. Refer to Note 13 - Goodwill and Intangible Assets, Net for further information. Impairment of Long-Lived Assets We review the recoverability of our long-lived assets, including buildings, equipment, right-of-use leased assets, internal use software and other intangible assets, when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on our ability to recover the carrying value of the asset from the expected future pre-tax cash flows (undiscounted and without interest charges) of the related operations. If these cash flows are less than the carrying value of such asset, an impairment loss is recognized for the difference between estimated fair value and carrying value. Our primary measure of fair value is based on discounted cash flows. Long-lived assets to be disposed of by sale are reported at the lower of carrying amount or fair value less costs to sell. Long-lived assets to be disposed of other than by sale (e.g., by abandonment, cease-use) would continue to be classified as held and used until the long-lived asset is disposed of (e.g. abandoned or when asset ceases to be used). Pension and Post-Retirement Benefit Obligations We sponsor various forms of defined benefit pension plans in several countries covering employees who meet eligibility requirements. Retiree health benefit plans cover U.S. and Canadian employees for retiree medical costs. We employ a delayed recognition feature in measuring the costs of pension and post-retirement benefit plans. This requires changes in the benefit obligations and changes in the value of assets set aside to meet those obligations to be recognized not as they occur, but systematically and gradually over subsequent periods. All changes are ultimately recognized as components of net periodic benefit cost, except to the extent they may be offset by subsequent changes. At any point, changes that have been identified and quantified but not recognized as components of net periodic benefit cost are recognized in Accumulated other comprehensive loss, net of tax. Several statistical and other factors that attempt to anticipate future events are used in calculating the expense, liability and asset values related to our pension and retiree health benefit plans. These factors include assumptions we make about the discount rate, expected return on plan assets, cash balance interest-crediting rate, rate of increase in healthcare costs, the rate of future compensation increases and mortality. Actual returns on plan assets are not immediately recognized in our income statement due to the delayed recognition requirement. In calculating the expected return on the plan asset component of our net periodic pension cost, we apply our estimate of the long-term rate of return on the plan assets that support our pension obligations, after deducting assets that are specifically allocated to Transitional Retirement Accounts (which are accounted for based on specific plan terms). For purposes of determining the expected return on plan assets, we utilize a market-related value approach in determining the value of the pension plan assets, rather than a fair market value approach. The primary difference between the two methods relates to systematic recognition of changes in fair value over time (generally two years) versus immediate recognition of changes in fair value. Our expected rate of return on plan assets is applied to the market-related asset value to determine the amount of the expected return on plan assets to be used in the determination of the net periodic pension cost. The market-related value approach reduces the volatility in net periodic pension cost that would result from using the fair market value approach. The discount rate is used to present value our future anticipated benefit obligations. The discount rate reflects the current rate at which benefit liabilities could be effectively settled considering the timing of expected payments for plan participants. In estimating our discount rate, we consider rates of return on high-quality fixed-income investments adjusted to eliminate the effects of call provisions, as well as the expected timing of pension and other benefit payments. Each year, the difference between the actual return on plan assets and the expected return on plan assets, as well as increases or decreases in the benefit obligation as a result of changes in the discount rate and other actuarial assumptions, are added to or subtracted from any cumulative actuarial gain or loss from prior years. This amount is the net actuarial gain or loss recognized in Accumulated other comprehensive loss. We amortize net actuarial gains and losses as a component of net pension cost for a year if, as of the beginning of the year, that net gain or loss (excluding asset gains or losses that have not been recognized in market-related value) exceeds 10% of the greater of the projected benefit obligation or the market-related value of plan assets (the corridor method). This determination is made on a plan-by-plan basis. If amortization is required for a particular plan, we amortize the applicable net gain or loss in excess of the 10% threshold on a straight-line basis in net periodic pension cost over the remaining service period of the employees participating in that pension plan. In plans where substantially all participants are inactive, the amortization period for the excess is the average remaining life expectancy of the plan participants. Our primary domestic plans allow participants the option of settling their vested benefits through the receipt of a lump-sum payment. The participant's vested benefit is considered fully settled upon payment of the lump sum. We have elected to apply settlement accounting and therefore we recognize the losses associated with settlements in this plan immediately upon the settlement of the vested benefits. Settlement accounting requires us to recognize a pro rata portion of the aggregate unamortized net actuarial losses upon settlement. The pro rata factor is computed as the percentage reduction in the projected benefit obligation due to the settlement of the participant's vested benefit. Refer to Note 19 - Employee Benefit Plans for further information regarding our Pension and Post-Retirement Benefit Obligations. Research, Development and Engineering (RD&E) Research, development and engineering costs are expensed as incurred. Sustaining engineering costs are incurred with respect to on-going product improvements or environmental compliance after initial product launch. Sustaining engineering costs were $54, $62 and $72 in for the years ended December 31, 2020, 2019 and 2018, respectively. Government Grants/Assistance Government grants related to income are recognized as a reduction of related expenses in the 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. Foreign Currency Translation and Remeasurement The functional currency for most of our foreign operations is the local currency. Net assets are translated at current rates of exchange and income, expense and cash flow items are translated at average exchange rates for the applicable period. The translation adjustments are recorded in Accumulated other comprehensive loss. The U.S. Dollar is used as the functional currency for certain foreign subsidiaries that conduct their business in U.S. Dollars as well as foreign subsidiaries operating in highly inflationary economies. For these subsidiaries, non-monetary foreign currency assets and liabilities are translated using historical rates, while monetary assets and liabilities are translated at current rates, with the U.S. dollar effects of rate changes recorded in Currency (gains) and losses within Other expenses, net together with other foreign currency remeasurements.

Revenue

12 Months Ended

Dec. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenue

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


	Year Ended December 31,
	2020		2019		2018
Primary geographical markets(1)
United States	$	4,186	$	5,429	$	5,610
Europe	1,883		2,326		2,625
Canada	393		518		569
Other	560		793		858
Total Revenues	$	7,022	$	9,066	$	9,662

Major product and services lines
Equipment	$	1,564	$	2,062	$	2,178
Supplies, paper and other sales	885		1,165		1,276
Maintenance agreements(2)	1,803		2,372		2,603
Service arrangements(3)	2,014		2,517		2,674
Rental and other	530		706		663
Financing	226		244		268

Total Revenues	$	7,022	$	9,066	$	9,662

Sales channels:

Direct equipment lease(4)	$	573	$	672	$	699
Distributors & resellers(5)	910		1,343		1,445
Customer direct	966		1,212		1,310
Total Sales	$	2,449	$	3,227	$	3,454

_____________

(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 (formerly our Managed Documents Services arrangements). Also includes revenues from embedded operating leases, which were not significant.

(4)Primarily reflects 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 December 31, 2020 and 2019, respectively. The majority of the balance at December 31, 2020 will 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, 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.


	Year Ended December 31,
	2020		2019		2018
Incremental direct costs of obtaining a contract	$	62	$	78	$	84
Amortization of incremental direct costs	81		88		95

The balance of deferred incremental direct costs net of accumulated amortization at December 31, 2020 and 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. Amounts deferred associated with contract fulfillment costs and inducements were $13 and $13 at December 31, 2020 and 2019, respectively, and related amortization was $4, $5 and $5 for the three years ended December 31, 2020, 2019 and 2018, 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.

- Definition

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.

+ References

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
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+ Details

Segment and Geographic Area Reporting

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Segment and Geographic Area Reporting

Segment Discussion

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

Geographic Area Data

Geographic area data is based upon the location of the subsidiary reporting the revenue or long-lived assets and is as follows:


	Revenues						Long-Lived Assets (1)
	Year Ended December 31,						As of December 31,
	2020		2019		2018		2020		2019
United States	$	4,186	$	5,429	$	5,610	$	692	$	769
Europe	1,883		2,326		2,625		312		305
Canada	393		518		569		84		98
Other areas	560		793		858		43		59
Total	$	7,022	$	9,066	$	9,662	$	1,131	$	1,231

_____________

(1)Long-lived assets are comprised of (i) Land, buildings and equipment, net, (ii) Equipment on operating leases, net, (iii) Leased right-of-use (ROU) assets, net, and (iv) Internal use software, net.

- Definition

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

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+ Details

Lessor

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Lessor

Refer to Note 1 - Basis of Presentation and Summary of Significant Accounting Policies - New Accounting Standards and Accounting Changes for additional information related to the adoption of ASU 2016-02, Leases (ASC Topic 842).

Lessor Accounting Policies: The following represent the updated disclosures to our Revenue Recognition policies as a result of the adoption of ASC Topic 842 effective January 1, 2019:

Bundled Lease Arrangements: A portion of our direct sales of equipment to end customers are made through bundled lease arrangements which typically include equipment, services (maintenance and managed services) and financing components where the customer pays a single negotiated fixed minimum monthly payment for all elements over the contractual lease term. These arrangements also typically include an incremental, variable component for page volumes in excess of the contractual page volume minimums, which are often expressed in terms of price-per-image or page. Revenues under these bundled lease arrangements are allocated considering the relative standalone selling prices of the lease and non-lease deliverables included in the bundled arrangement. Lease deliverables include the equipment and financing, while the non-lease deliverables generally consist of the services, which include supplies. Consistent with the guidance in ASC 842 and ASC 606, regarding the allocation of fixed and variable consideration, we only consider the fixed payments for purposes of allocation to the lease elements of the contract. The fixed minimum monthly payments are multiplied by the number of months in the contract term to arrive at the total fixed lease payments that the customer is obligated to make over the lease term. Amounts allocated to the equipment and financing elements are then subjected to the accounting estimates noted below under Leases to ensure the values reflect standalone selling prices.

The remainder of any fixed payments, as well as the variable payments, are allocated to non-lease elements because the variable consideration for incremental page volume or usage is considered attributable to the delivery of those elements. The consideration for the non-lease elements is not dependent on the consideration for equipment and vice versa and the consideration for the equipment and services is priced at the appropriate standalone values; therefore, the relative standalone selling price allocation method is not necessary. The revenue associated with the non-lease elements are normally accounted for as a single performance obligation being delivered in a series with delivery being measured as the usage billed to the customer. Accordingly, revenue from these agreements is recognized in a manner consistent with the guidance for Maintenance and Services agreements. Refer to Note 1 - Basis of Presentation and Summary of Significant Accounting Policies.

Leases: The two primary accounting provisions we use to classify transactions as sales-type or operating leases are: (i) a review of the lease term to determine if it is for the major part of the economic life of the underlying equipment (defined as greater than 75%); and (ii) a review of the present value of the lease payments to determine if they are equal to or greater than substantially all of the fair market value of the equipment at the inception of the lease (defined as greater than 90%). Equipment placements included in arrangements meeting these conditions are accounted for as sales-type leases and revenue is recognized in a manner consistent with Equipment. Equipment placements included in arrangements that do not meet these conditions are accounted for as operating leases and revenue is recognized over the term of the lease.

We consider the economic life of most of our products to be five years, since this represents the most frequent contractual lease term for our principal products and only a small percentage of our leases are for original terms longer than five years. There is no significant after-market for our used equipment. We believe five years is representative of the period during which the equipment is expected to be economically usable, with normal service, for the purpose for which it is intended.

We perform an analysis of the stand-alone selling price of equipment based on cash selling prices during the applicable period. The cash selling prices are compared to the range of values determined for our leases. The range of cash selling prices must be reasonably consistent with the lease selling prices in order for us to determine that such lease prices reflects stand-alone value.

Our lease pricing interest rates, which are used in determining customer payments in a bundled lease arrangement, are developed based upon a variety of factors including local prevailing rates in the marketplace and the customer’s credit history, industry and credit class. We reassess our pricing interest rates quarterly based on changes in the local prevailing rates in the marketplace. The pricing interest rates generally equal the implicit rates within the leases, as corroborated by our comparisons of cash to lease selling prices noted above.

Additional Lease Payments: Certain leases may require the customer to pay property taxes and insurance on the equipment. In these instances, the amounts for property taxes and insurance that we invoice to customers and pay to third parties are considered variable payments and are recorded as other revenues and other cost of revenues,

respectively. Amounts related to property taxes and insurance are not material. We exclude from variable payments all lessor costs that are explicitly required to be paid directly by a lessee on behalf of the lessor to a third party.

Presentation: 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 Statements of Income	Year Ended December 31,
		2020		2019		2018
Revenue from sales type leases	Sales	$	573	$	672	$	699


Interest income on lease receivables	Financing	226		244		268


Lease income - operating leases	Services, maintenance and rentals	313		396		438
Variable lease income	Services, maintenance and rentals	66		107		120
Total Lease income		$	1,178	$	1,419	$	1,525

Profit at lease commencement on sales type leases was estimated to be approximately $207, $276 and $302 for the three years ended December 31, 2020, 2019 and 2018, respectively.

Lessor

Lessor Accounting Policies: The following represent the updated disclosures to our Revenue Recognition policies as a result of the adoption of ASC Topic 842 effective January 1, 2019:

The components of lease income are as follows:


	Location in Statements of Income	Year Ended December 31,
		2020		2019		2018
Revenue from sales type leases	Sales	$	573	$	672	$	699


Interest income on lease receivables	Financing	226		244		268


Lease income - operating leases	Services, maintenance and rentals	313		396		438
Variable lease income	Services, maintenance and rentals	66		107		120
Total Lease income		$	1,178	$	1,419	$	1,525

Profit at lease commencement on sales type leases was estimated to be approximately $207, $276 and $302 for the three years ended December 31, 2020, 2019 and 2018, respectively.

Lessor

Lessor Accounting Policies: The following represent the updated disclosures to our Revenue Recognition policies as a result of the adoption of ASC Topic 842 effective January 1, 2019:

The components of lease income are as follows:


	Location in Statements of Income	Year Ended December 31,
		2020		2019		2018
Revenue from sales type leases	Sales	$	573	$	672	$	699


Interest income on lease receivables	Financing	226		244		268


Lease income - operating leases	Services, maintenance and rentals	313		396		438
Variable lease income	Services, maintenance and rentals	66		107		120
Total Lease income		$	1,178	$	1,419	$	1,525

Profit at lease commencement on sales type leases was estimated to be approximately $207, $276 and $302 for the three years ended December 31, 2020, 2019 and 2018, respectively.

Acquisitions

12 Months Ended

Dec. 31, 2020

Business Combinations [Abstract]

Acquisitions

2020 Acquisitions

Xerox continues to focus on further penetrating the small-to-medium sized business (SMB) market through organic and inorganic growth, which includes acquisitions of local area resellers and partners (including multi-brand dealers). During 2020, business acquisitions associated with this initiative totaled $194, net of cash acquired, and included three acquisitions in the U.K. for $172 (GBP 133 million) - Arena Group, Altodigital Networks and ITEC Connect, as well as an acquisition in Canada for approximately $22 (CAD 29 million). These acquisitions are expected to expand our presence in the SMB market in both Western Europe and Canada.

2020 also included the acquisition of CareAR directly by Xerox Holdings for $9.

2020 Summary

All of our 2020 acquisitions resulted in 100% ownership of the acquired companies. The operating results of these acquisitions are not material to our financial statements and are included within our results from the respective acquisition dates. The purchase prices were all cash and were primarily allocated to Intangible assets, net and Goodwill, of which, none is expected to be deductible for tax purposes. Our 2020 acquisitions contributed aggregate revenues of approximately $99 to our 2020 total revenues from their respective acquisition dates.

The following table summarizes the purchase price allocations for our 2020 acquisitions as of the acquisition dates:


	Weighted-Average Life	Total 2020 Acquisitions
Accounts/finance receivables		$	20
Intangible assets:
Customer relationships	9 years	69
Trademarks	9 years	9
Technology	3 years	9

Goodwill		111
Other assets		44
Total Assets acquired		262
Liabilities assumed		(59)
Total Purchase Price		$	203

2019 Acquisitions

Business acquisitions in 2019 totaled $38 and included Rabbit Office Automation (ROA), a San Francisco Bay area dealer, and Heritage Business Systems, Inc. (HBS), a Delaware Valley dealer. The acquisition of these dealers in 2019 expanded our distribution capabilities of office technology sales, services and supplies to SMB customers in these markets. 2019 acquisitions also include $4 related to an acquisition of assets.

2019 Summary

All of our 2019 acquisitions resulted in 100% ownership of the acquired companies. The operating results of the 2019 acquisitions are not material to our financial statements and were included within our results from the respective acquisition dates. The purchase prices for these acquisitions were all cash and were primarily allocated to Intangible assets, net and Goodwill. Our 2019 acquisitions contributed aggregate revenues of approximately $21 and $18 to our 2020 and 2019 total revenues from their respective acquisition dates.

2018 Acquisitions

There were no business acquisitions in 2018.

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 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

12 Months Ended

Dec. 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

Divestitures

Discontinued Operations

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) for approximately $2.2 billion as well as the sale of its indirect 51% partnership interest in Xerox International Partners (XIP) for approximately $23 (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.

The Sales resulted in a pre-tax gain of $629 ($539 after-tax), and included a reclassification from Accumulated other comprehensive loss of $165 (Refer to Note 25 - Other Comprehensive Income (Loss)) as well as approximately $9 of transaction costs and $9 of allocated goodwill associated with our XIP business (Refer to Note 13 - Goodwill and Intangible Assets, Net). The XIP allocated goodwill was based on the relative fair value of our XIP business, as evidenced by the sales price, as compared to the total estimated fair value of Xerox. No Goodwill was allocated for our investment in FX based on consideration of the guidance in ASC 350-20-40-2 and the fact that an equity investment is not considered a business in accordance with ASC 805-10-55, as it was not controlled by Xerox.

The transactions with FH also included an OEM license agreement by and between FX and Xerox, granting FX the right to use specific Xerox Intellectual Property (IP) in providing certain named original equipment manufacturers (OEM’s) with products (such as printer engines) in exchange for a one-time upfront license fee of $77. The license fee is recorded within Rental and other revenues for 2019. In addition, arrangements with FX whereby we purchase

inventory from and sell inventory to FX, will continue after the Sales and, as a result of our Technology Agreement with Fuji Xerox which remains in effect through March 2021, we will continue to receive royalty payments for FX’s use of our Xerox brand trademark, as well as rights to access our patent portfolio in exchange for access to their patent portfolio.

Refer to Note 12 - Investment in Affiliates, at Equity, for additional information on transactions with FX as well as FX's intention to terminate the Technology Agreement effective March 31, 2021.

Summarized financial information for our Discontinued Operations is as follows:


	Year Ended December 31,
	2020		2019		2018
Revenue	$	—	$	79	$	168



Income from operations	$	—	$	176	$	74
Gain on disposal	—		629		—
Income before income taxes	—		805		74
Income tax expense	—		95		10
Income from discontinued operations, net of tax	—		710		64
Income from discontinued operations attributable to noncontrolling interests, net of tax	—		5		9
Income from discontinued operations, attributable to Xerox, net of tax	$	—	$	705	$	55

The following is a summary of selected financial information for our Discontinued Operations:


	Year Ended December 31,
	2020		2019		2018
Cost and Expenses:
Cost of revenues	$	—	$	44	$	110

Other expenses	—		6		9
Total Costs and Expenses	$	—	$	50	$	119
Selected amounts included in Costs and Expenses:
Depreciation and amortization	$	—	$	—	$	—
Restructuring and related costs, net	—		—		1







Other:
Equity in net income of FX	$	—	$	147	$	25
Net income attributable to noncontrolling interest - XIP	—		5		9
Capital expenditures	—		—		—

Refer to Note 12 - Investments in Affiliates, at Equity for additional information regarding FX, including summarized financial information of FX.

Accounts Receivable, Net

12 Months Ended

Dec. 31, 2020

Receivables [Abstract]

Accounts Receivable, Net

Accounts receivable, net were as follows:


	December 31,
	2020		2019
Invoiced	$	735	$	980
Accrued (1)	217		311
Allowance for doubtful accounts	(69)		(55)
Accounts receivable, net	$	883	$	1,236

____________

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

The allowance for doubtful accounts was as follows:


Balance at December 31, 2018	$	56
Provision	18
Charge-offs	(19)
Recoveries and other(1)	—
Balance at December 31, 2019	$	55
Provision	35
Charge-offs	(22)
Recoveries and other(1)	1
Balance at December 31, 2020	$	69

_____________

(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 1 - Basis of Presentation and Summary of Significant Accounting Policies), 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 the COVID-19 pandemic, the allowance for doubtful accounts as a percentage of gross receivables increased to 7.2% at December 31, 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, $136 and $165 remained uncollected as of December 31, 2020 and 2019, respectively. Accounts receivable sales activity was as follows:


	Year Ended December 31,
	2020		2019		2018
Accounts receivable sales(1)	$	333	$	393	$	405

_____________

(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 equipment.

Finance receivables, net were as follows:


	December 31,
	2020		2019
Gross receivables	$	3,691	$	3,865
Unearned income	(393)		(425)
Subtotal	3,298		3,440
Residual values	—		—
Allowance for doubtful accounts	(133)		(89)
Finance Receivables, Net	3,165		3,351
Less: Billed portion of finance receivables, net	99		111
Less: Current portion of finance receivables not billed, net	1,082		1,158
Finance Receivables Due After One Year, Net	$	1,984	$	2,082

A summary of our gross finance receivables' future contractual maturities, including those previously billed, is as follows:


	December 31,
	2020		2019
12 Months	$	1,426	$	1,490
24 Months	1,006		1,052
36 Months	697		728
48 Months	395		422
60 Months	152		158
Thereafter	15		15
Total	$	3,691	$	3,865

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 1 - Basis of Presentation and Summary of Significant Accounting Policies), 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 the COVID-19 pandemic, the allowance for doubtful credit losses was increased to 4.0% of gross finance receivables (net of unearned income) at December 31, 2020 from 2.6% at December 31, 2019. In determining the level of reserve required as of December 31, 2020, we critically assessed 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 receivables 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 by the Company from its 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. These 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.

Our allowance for doubtful finance receivables is effectively determined by geography, so 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.

The increase in charge-offs in 2020 as compared to 2019 was primarily in the U.S. and reflected the impacts from the COVID-19 pandemic and the lower level of government subsidy and support to U.S. based customers as compared to support provided to Europe based customers. However, as reflected in our allowance for doubtful receivables, charge-offs are expected to increase into 2021 as a result of the follow-on economic disruption related to the COVID-19 pandemic and as the level of government subsidies and support decreases in 2021.

Amounts disclosed below for the year ended December 31, 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:


Allowance for Credit Losses:	United States		Canada(1)		Europe(1)(2)		Total
Balance at December 31, 2018	$	53	$	12	$	27	$	92
Provision	20		1		7		28
Charge-offs	(15)		(5)		(14)		(34)
Recoveries and other(3)	1		2		—		3

Balance at December 31, 2019	$	59	$	10	$	20	$	89
Provision	41		8		32		81
Charge-offs	(23)		(5)		(14)		(42)
Recoveries and other(3)	—		2		3		5

Balance at December 31, 2020	$	77	$	15	$	41	$	133
Finance Receivables Collectively Evaluated for Impairment:
December 31, 2019(4)	$	1,922	$	326	$	1,192	$	3,440
December 31, 2020(4)	$	1,823	$	297	$	1,178	$	3,298

_____________

(1)Prior year amounts have been recast 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 $133 and $89 at December 31, 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 within the various classes 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:


	December 31, 2020														December 31, 2019
	2020		2019		2018		2017		2016		Prior		Total Finance Receivables		Total Finance Receivables
Total United States (Direct):
Low Credit Risk	$	164	$	151	$	128	$	71	$	32	$	4	$	550	$	640
Average Credit Risk	54		95		52		26		8		2		237		331
High Credit Risk	90		42		27		13		5		3		180		132
Total	308		288		207		110		45		9		967		1,103

Total United States (Indirect):
Low Credit Risk	193		140		79		33		7		—		452		258
Average Credit Risk	129		124		71		31		8		—		363		445
High Credit Risk	19		9		9		3		1		—		41		116
Total	341		273		159		67		16		—		856		819

Canada(1)
Low Credit Risk	37		34		24		10		5		1		111		163
Average Credit Risk	46		39		26		17		6		1		135		97
High Credit Risk	18		10		10		10		3		—		51		66
Total	101		83		60		37		14		2		297		326

EMEA(1)(2)
Low Credit Risk	197		177		131		62		20		4		591		655
Average Credit Risk	170		160		108		51		17		4		510		479
High Credit Risk	23		24		15		10		4		1		77		58
Total	390		361		254		123		41		9		1,178		1,192

Total Finance Receivables
Low Credit Risk	591		502		362		176		64		9		1,704		1,716
Average Credit Risk	399		418		257		125		39		7		1,245		1,352
High Credit Risk	150		85		61		36		13		4		349		372
Total	$	1,140	$	1,005	$	680	$	337	$	116	$	20	$	3,298	$	3,440

_____________

(1)Prior year amounts have been recast 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:


	December 31, 2020
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing






Direct	$	33	$	6	$	9	$	48	$	919	$	967	$	74
Indirect	21		4		3		28		828		856		—
Total United States	54		10		12		76		1,747		1,823		74
Canada	8		2		—		10		287		297		12





EMEA (1)	12		3		2		17		1,161		1,178		23

Total	$	74	$	15	$	14	$	103	$	3,195	$	3,298	$	109


	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)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..

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 December 31, 2020 the SPE held $286 of total Finance receivables, net, which are included in our Consolidated Balance Sheet as collateral for the secured loan agreement.

In December 2020, we sold $610 of U.S. based finance receivables to a consolidated SPE, which funded the purchase through a secured loan agreement with a financial institution. As of December 31, 2020 the SPE held $602 of total Finance receivables, net, which are included in our Consolidated Balance Sheet as collateral for the secured loan agreement.

Refer to Note 16 - Debt, for additional information related to these arrangements including the related secured loan agreement.

Finance Receivables, Net

12 Months Ended

Dec. 31, 2020

Receivables [Abstract]

Finance Receivables, Net

Accounts Receivable, Net

Accounts receivable, net were as follows:


	December 31,
	2020		2019
Invoiced	$	735	$	980
Accrued (1)	217		311
Allowance for doubtful accounts	(69)		(55)
Accounts receivable, net	$	883	$	1,236

____________

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

The allowance for doubtful accounts was as follows:


Balance at December 31, 2018	$	56
Provision	18
Charge-offs	(19)
Recoveries and other(1)	—
Balance at December 31, 2019	$	55
Provision	35
Charge-offs	(22)
Recoveries and other(1)	1
Balance at December 31, 2020	$	69

_____________

(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


	Year Ended December 31,
	2020		2019		2018
Accounts receivable sales(1)	$	333	$	393	$	405

_____________

Finance Receivables, Net

Finance receivables, net were as follows:


	December 31,
	2020		2019
Gross receivables	$	3,691	$	3,865
Unearned income	(393)		(425)
Subtotal	3,298		3,440
Residual values	—		—
Allowance for doubtful accounts	(133)		(89)
Finance Receivables, Net	3,165		3,351
Less: Billed portion of finance receivables, net	99		111
Less: Current portion of finance receivables not billed, net	1,082		1,158
Finance Receivables Due After One Year, Net	$	1,984	$	2,082

A summary of our gross finance receivables' future contractual maturities, including those previously billed, is as follows:


	December 31,
	2020		2019
12 Months	$	1,426	$	1,490
24 Months	1,006		1,052
36 Months	697		728
48 Months	395		422
60 Months	152		158
Thereafter	15		15
Total	$	3,691	$	3,865

Finance Receivables - Allowance for Credit Losses and Credit Quality


Allowance for Credit Losses:	United States		Canada(1)		Europe(1)(2)		Total
Balance at December 31, 2018	$	53	$	12	$	27	$	92
Provision	20		1		7		28
Charge-offs	(15)		(5)		(14)		(34)
Recoveries and other(3)	1		2		—		3

Balance at December 31, 2019	$	59	$	10	$	20	$	89
Provision	41		8		32		81
Charge-offs	(23)		(5)		(14)		(42)
Recoveries and other(3)	—		2		3		5

Balance at December 31, 2020	$	77	$	15	$	41	$	133
Finance Receivables Collectively Evaluated for Impairment:
December 31, 2019(4)	$	1,922	$	326	$	1,192	$	3,440
December 31, 2020(4)	$	1,823	$	297	$	1,178	$	3,298

_____________

(1)Prior year amounts have been recast 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 $133 and $89 at December 31, 2020 and 2019, respectively.

We evaluate our customers within the various classes 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:


	December 31, 2020														December 31, 2019
	2020		2019		2018		2017		2016		Prior		Total Finance Receivables		Total Finance Receivables
Total United States (Direct):
Low Credit Risk	$	164	$	151	$	128	$	71	$	32	$	4	$	550	$	640
Average Credit Risk	54		95		52		26		8		2		237		331
High Credit Risk	90		42		27		13		5		3		180		132
Total	308		288		207		110		45		9		967		1,103

Total United States (Indirect):
Low Credit Risk	193		140		79		33		7		—		452		258
Average Credit Risk	129		124		71		31		8		—		363		445
High Credit Risk	19		9		9		3		1		—		41		116
Total	341		273		159		67		16		—		856		819

Canada(1)
Low Credit Risk	37		34		24		10		5		1		111		163
Average Credit Risk	46		39		26		17		6		1		135		97
High Credit Risk	18		10		10		10		3		—		51		66
Total	101		83		60		37		14		2		297		326

EMEA(1)(2)
Low Credit Risk	197		177		131		62		20		4		591		655
Average Credit Risk	170		160		108		51		17		4		510		479
High Credit Risk	23		24		15		10		4		1		77		58
Total	390		361		254		123		41		9		1,178		1,192

Total Finance Receivables
Low Credit Risk	591		502		362		176		64		9		1,704		1,716
Average Credit Risk	399		418		257		125		39		7		1,245		1,352
High Credit Risk	150		85		61		36		13		4		349		372
Total	$	1,140	$	1,005	$	680	$	337	$	116	$	20	$	3,298	$	3,440

_____________

(1)Prior year amounts have been recast 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:


	December 31, 2020
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing






Direct	$	33	$	6	$	9	$	48	$	919	$	967	$	74
Indirect	21		4		3		28		828		856		—
Total United States	54		10		12		76		1,747		1,823		74
Canada	8		2		—		10		287		297		12





EMEA (1)	12		3		2		17		1,161		1,178		23

Total	$	74	$	15	$	14	$	103	$	3,195	$	3,298	$	109


	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)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..

Secured Borrowings and Collateral

Refer to Note 16 - Debt, for additional information related to these arrangements including the related secured loan agreement.

Inventories and Equipment on Operating Leases, Net

12 Months Ended

Dec. 31, 2020

Inventories and Equipment on Operating Leases, Net [Abstract]

Inventories and Equipment on Operating Leases, Net

The following is a summary of Inventories by major category:


	December 31,
	2020		2019
Finished goods	$	707	$	576
Work-in-process	43		47
Raw materials	93		71
Total Inventories	$	843	$	694

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

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


	December 31,
	2020		2019
Equipment on operating leases	$	1,376	$	1,443
Accumulated depreciation	(1,080)		(1,079)
Equipment on operating leases, net	$	296	$	364

Depreciable lives generally vary from three to five years consistent with our planned and historical usage of the equipment subject to operating leases. Estimated minimum future revenues associated with Equipment on operating leases are as follows:


	December 31,
	2020		2019
12 months	$	215	$	226
24 months	129		139
36 months	74		84
48 months	32		39
60 months	12		12
Thereafter	1		2
Total	$	463	$	502

Total contingent rentals on operating leases, consisting principally of usage charges in excess of minimum contracted amounts, for the years ended December 31, 2020, 2019 and 2018 amounted to $66, $107 and $120, respectively. The decrease in contingent rentals for the year ended December 31, 2020 is primarily the result of lower equipment usage during 2020 as a result of business closures from the COVID-19 pandemic. The amount disclosed for the year ended December 31, 2018 was accounted for under ASC 840, Leases, which was superseded by ASC 842, Leases, adopted on January 1, 2019. Differences upon adoption were not material. Refer to Note 1 - Basis of Presentation and Summary of Significant Accounting Policies, Recent Accounting Pronouncements for additional information.

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 December 31, 2020 the SPE holds $8 of Equipment on operating leases, net, which are included in our Consolidated Balance Sheet as collateral for the secured loan agreement.

Refer to Note 16 - Debt, for additional information related to this arrangement including the related secured loan agreement.

Land, Buildings, Equipment and Software, Net

12 Months Ended

Dec. 31, 2020

Land, Buildings and Equipment, Net [Abstract]

Land, Buildings, Equipment and Software, Net

Land, buildings and equipment, net were as follows:


		December 31,
	Estimated Useful Lives (Years)	2020		2019
Land		$	13	$	12
Building and building equipment	25 to 50	814		794
Leasehold improvements	Varies	124		135
Plant machinery	5 to 12	1,149		1,124
Office furniture and equipment	3 to 15	476		565
Other	4 to 20	45		45
Construction in progress		17		23
Subtotal		2,638		2,698
Accumulated depreciation		(2,231)		(2,272)
Land, buildings and equipment, net		$	407	$	426

Depreciation expense was $87, $101 and $148 for the three years ended December 31, 2020, 2019 and 2018, respectively.

We lease buildings and equipment, substantially all of which are accounted for as operating leases. Finance leased assets were $10 and $7 at December 31, 2020 and 2019, respectively. Refer to Note 11 - Lessee for additional information regarding leased assets.

Internal Use Software

As of December 31, 2020 and 2019, capitalized costs related to internal use software, net of accumulated amortization, were $118 and $122, respectively. Useful lives of our internal use software generally vary from three to seven years.

Lessee

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Lessee

Lessee Accounting Policies:

We determine at inception whether an arrangement is a lease. Our leases do not include assets of a specialized nature, or the transfer of ownership at the end of the lease, and the exercise of end-of-lease purchase options, which are primarily in our equipment leases, is not reasonably assured at lease inception. Accordingly, the two primary criteria we use to classify transactions as operating or finance leases are: (i) a review of the lease term to determine if it is equal to or greater than 75% of the economic life of the asset, and (ii) a review of the present value of the minimum lease payments to determine if they are equal to or greater than 90% of the fair market value of the asset at the inception of the lease. Right-of-use (ROU) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. We also assess arrangements for goods or services to determine if the arrangement contains a lease at its inception. This assessment first considers whether there is an implicitly or explicitly identified asset in the arrangement and then whether there is a right to control the use of the asset. If there is an embedded lease within a contract, the Company determines the classification of the lease at the lease inception date consistent with standalone leases of assets.

Operating leases are included in Other long-term assets, Accrued expenses and other current liabilities, and Other long-term liabilities in our Consolidated Balance Sheets. Finance leases are included in Land, buildings and equipment, net, Accrued expenses and other current liabilities, and Other long-term liabilities in our Consolidated Balance Sheets.

Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Since the implicit rate for almost all of our leases is not readily determinable, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is the rate of interest that we would have to pay to borrow, on a collateralized basis, an amount equal to the lease payments, in a similar economic environment and over a similar term. The rate is dependent on several factors, including the lease term and currency of the lease payments.

Lease terms used to calculate the present value of lease payments generally do not include any options to extend, renew, or terminate the lease, as we do not have reasonable certainty at lease inception that these options will be exercised. We generally consider the economic life of our operating lease ROU assets to be comparable to the useful life of similar owned assets. We have elected the short-term lease exception, therefore operating lease ROU assets and liabilities do not include leases with a lease term of twelve months or less. Our leases generally do not provide a residual guarantee. The operating lease ROU asset also excludes lease incentives.

Lease expense is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components. These components are accounted for separately for vehicle and equipment leases. We account for the lease and non-lease components as a single lease component for real estate leases of offices and warehouses.

We review the impairment of our ROU assets consistent with the approach applied for our other long-lived assets. We review the recoverability of our long-lived assets when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on our ability to recover the carrying value of the asset from the expected undiscounted future pre-tax cash flows of the related operations. We have elected to include the carrying amount of operating lease liabilities in any tested asset group and include the associated operating lease payments in the undiscounted future pre-tax cash flows.

Lessee Summary:

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:


	Year Ended December 31,
	2020		2019
Operating lease expense	$	113	$	125
Short-term lease expense	20		21
Variable lease expense(1)	47		48
Sublease income	(2)		(1)

Total Lease expense	$	178	$	193

_____________

(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.

As of December 31, 2020, we had no additional operating leases that had not yet commenced.

Operating leases ROU assets, net and operating lease liabilities were reported in the Consolidated Balance Sheets as follows:


	December 31,
	2020		2019
Other long-term assets	$	310	$	319

Accrued expenses and other current liabilities	$	83	$	87
Other long-term liabilities	250		260
Total Operating lease liabilities	$	333	$	347

Supplemental information related to operating leases is as follows:


	Year Ended December 31,
	2020			2019
Cash paid for amounts included in the measurement of lease liabilities - Operating cash flows	$	119		$	126
Right-of-use assets obtained in exchange for new lease liabilities (1)	76			75
Weighted-average remaining lease term	5 years			4 years
Weighted-average discount rate	5.03		%	5.47		%

_____________

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

Maturities and additional information related to operating lease liabilities are as follows:


	December 31,
	2020		2019
12 months	$	104	$	109
24 months	88		87
36 months	68		73
48 months	37		56
60 months	25		24
Thereafter	52		45
Total Lease payments	374		394
Less: Imputed interest	41		47
Total Operating lease liabilities	$	333	$	347

Finance Leases

Xerox has finance leases for equipment in the U.S. and Europe and related infrastructure, within outsourced warehouse supply arrangements, in the U.S. These leases have varying maturities up to six years with a maximum expiration date through December 2026. As of December 31, 2020 and 2019, the remaining lease obligation for all finance leases is $9 and $7, respectively, based on discount rates of 4.34% and 4.07%, respectively. The ROU asset balances associated with these finance leases at December 31, 2020 and 2019 of $10 and $7, respectively are included in Land, buildings and equipment, net in the Consolidated Balance Sheets.

Prior Period Disclosures under ASC 840

For the year ended December 31, 2018, operating lease expense, net of sublease income, was $147.

Lessee

Lessee Accounting Policies:

Lessee Summary:

Operating Leases

The components of lease expense are as follows:


	Year Ended December 31,
	2020		2019
Operating lease expense	$	113	$	125
Short-term lease expense	20		21
Variable lease expense(1)	47		48
Sublease income	(2)		(1)

Total Lease expense	$	178	$	193

_____________

(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.

As of December 31, 2020, we had no additional operating leases that had not yet commenced.

Operating leases ROU assets, net and operating lease liabilities were reported in the Consolidated Balance Sheets as follows:


	December 31,
	2020		2019
Other long-term assets	$	310	$	319

Accrued expenses and other current liabilities	$	83	$	87
Other long-term liabilities	250		260
Total Operating lease liabilities	$	333	$	347

Supplemental information related to operating leases is as follows:


	Year Ended December 31,
	2020			2019
Cash paid for amounts included in the measurement of lease liabilities - Operating cash flows	$	119		$	126
Right-of-use assets obtained in exchange for new lease liabilities (1)	76			75
Weighted-average remaining lease term	5 years			4 years
Weighted-average discount rate	5.03		%	5.47		%

_____________

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

Maturities and additional information related to operating lease liabilities are as follows:


	December 31,
	2020		2019
12 months	$	104	$	109
24 months	88		87
36 months	68		73
48 months	37		56
60 months	25		24
Thereafter	52		45
Total Lease payments	374		394
Less: Imputed interest	41		47
Total Operating lease liabilities	$	333	$	347

Finance Leases

Prior Period Disclosures under ASC 840

For the year ended December 31, 2018, operating lease expense, net of sublease income, was $147.

Investment in Affiliates, at Equity

12 Months Ended

Dec. 31, 2020

Equity Method Investments and Joint Ventures [Abstract]

Investment in Affiliates, at Equity

As disclosed in Note 6 - Divestitures, in November 2019 Xerox Holdings sold its remaining indirect 25% equity interest in Fuji Xerox, which had been previously accounted for as an equity method investment. Accordingly, our remaining Investment in Affiliates, at Equity largely consists of several minor investments in entities in the Middle East region. Investments in corporate joint ventures and other companies in which we generally have a 20% to 50% ownership interest were $47 and $46 at December 31, 2020 and 2019, respectively

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


	Year Ended December 31,
	2020		2019		2018
Fuji Xerox(1)	$	—	$	147	$	25
Other	4		8		8
Total Equity in net income of unconsolidated affiliates	$	4	$	155	$	33

_____________

(1)Equity in net income for Fuji Xerox is reported in Income from discontinued operations, net of tax for 2019 and 2018. The equity in net income for Fuji Xerox in 2019 is through the date of sale.

Fuji Xerox

Fuji Xerox is headquartered in Tokyo and operates in Japan, China, Australia, New Zealand, Vietnam and other areas of the Pacific Rim. Equity in net income of Fuji Xerox was affected by certain adjustments to reflect the deferral of profit associated with intercompany sales. These adjustments resulted in recorded equity income that may have been different from that implied by our (former) 25% ownership interest. In addition, the Equity in net income of Fuji Xerox for the years ended December 31, 2019 and 2018, includes after-tax restructuring and other charges of $20 and $95, respectively.

We also received dividends from Fuji Xerox for the years ended December 31, 2019 and 2018, which were reflected as a reduction in our investment upon receipt, of $69 and $23, respectively.

Summarized financial information for Fuji Xerox is as follows:


	Through Date of Sale		Year Ended December 31, 2018

Summary of Operations
Revenues	$	7,667	$	9,161
Costs and expenses	6,814		8,880
Income before income taxes	853		281
Income tax expense	258		160
Net Income	595		121
Less: Net income - noncontrolling interests	3		2
Net Income - Fuji Xerox	$	592	$	119


Balance Sheet	At Date of Sale		December 31, 2018
Assets
Current assets	$	4,876	$	4,179
Long-term assets	3,964		4,034
Total Assets	$	8,840	$	8,213
Liabilities and Equity
Short-term debt	$	49	$	130
Other current liabilities	1,932		1,827
Long-term debt	16		24
Other long-term liabilities	514		395
Noncontrolling interests	18		30
Fuji Xerox shareholders' equity	6,311		5,807
Total Liabilities and Equity	$	8,840	$	8,213

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


Financial Statement	Exchange Basis	2019	2018
Summary of Operations	Weighted average rate	109.03	110.28
Balance Sheet	Year-end rate	108.83	110.26

Transactions with Fuji Xerox

We have a Technology Agreement (TA) with Fuji Xerox whereby we receive royalty payments for their use of our Xerox brand trademark, as well as rights to access our patent portfolio in exchange for access to their patent portfolio. These payments are included in Services, maintenance and rentals revenues in the Consolidated Statements of Income.

In January 2020, Fuji Xerox notified Xerox of its intention to terminate the TA on the agreement’s expiration date of March 31, 2021. The series of transactions entered into between Xerox and FH in November 2019, as disclosed in Note 6 - Divestitures, included an amendment to the TA that would allow Fuji Xerox continued use of the Xerox brand trademark for two years after the date of termination of the TA as it transitions to a new brand in exchange for an upfront prepaid fixed royalty of $100. At this time, we expect Fuji Xerox to continue to use the Xerox brand trademark over the next two years subsequent to termination of the TA and, therefore, to make the upfront payment due under the amended agreement. Accordingly, we expect any potential entry by Xerox into the Fuji Xerox territory under the Xerox brand to be deferred to at least April 1, 2023.

The product supply agreements with Fuji Xerox will continue to be effective despite the termination of the TA, and Fuji Xerox and Xerox will continue to operate as each other’s product supplier under existing purchase/supply agreements. Prior to the sale of our investment in Fuji Xerox, pricing of the transactions under these arrangements were based on terms the Company believed to be negotiated at arm's length. Our purchase commitments with Fuji Xerox are in the normal course of business and typically have a lead time of three months. In addition, we pay Fuji Xerox and they pay us for unique research and development costs. As disclosed in Note 6 - Divestitures, these agreements continue to be in effect after the sale of our Investment in Fuji Xerox.

Transactions with Fuji Xerox were as follows:


	Year Ended December 31,
	2020		2019		2018

Royalty revenue earned	$	88	$	99	$	96
Inventory purchases from Fuji Xerox	1,077		1,337		1,501
Inventory sales to Fuji Xerox	25		33		43
R&D payments received from Fuji Xerox	1		—		1
R&D payments paid to Fuji Xerox	5		4		8

As of December 31, 2020 and 2019, net amounts due to Fuji Xerox were $102 and $353, respectively.

Goodwill and Intangible Assets, Net

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets, Net

Goodwill

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


	Total
Balance at December 31, 2017	$	3,921
Foreign currency translation	(63)
Balance at December 31, 2018	$	3,858
Foreign currency translation	28
Acquisitions	14



Balance at December 31, 2019	$	3,900
Foreign currency translation	60
Acquisitions:
U.K. Acquisitions	98
Canada Acquisition	10
Other	3
Balance at December 31, 2020(1)	$	4,071

_____________

(1)Balance at December 31, 2020 includes $3 of Goodwill recorded by Xerox Holdings.

Intangible Assets, Net

Intangible assets, net were $237 at December 31, 2020. Intangible assets were comprised of the following:


		December 31, 2020						December 31, 2019
	Weighted Average Amortization	Gross Carrying Amount		Accumulated Amortization		Net Amount(1)		Gross Carrying Amount		Accumulated Amortization		Net Amount
Customer relationships	10 years	$	185	$	74	$	111	$	140	$	86	$	54
Distribution network	25 years	123		103		20		123		99		24
Trademarks	19 years	235		138		97		258		146		112
Technology and non-compete	9 years	29		20		9		18		9		9
Total Intangible Assets		$	572	$	335	$	237	$	539	$	340	$	199

_____________

(1)Balance at December 31, 2020 includes $8 of Intangible assets, net, related to existing technology, recorded by Xerox Holdings.

Amortization expense related to intangible assets was $56, $45 and $48 for the three years ended December 31, 2020, 2019 and 2018, respectively. Amortization expense in 2020 includes $11 related to write-offs of certain XBS trade names that were discontinued. Excluding the impact of future acquisitions, amortization expense is expected to approximate $39 in 2021, 2022 and 2023, $36 in 2024 and $31 in 2025. The decrease from 2024 to 2025 is related to the distribution network, which is expected to be fully amortized by 2025.

Restructuring Programs

12 Months Ended

Dec. 31, 2020

Restructuring and Related Activities [Abstract]

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. As part of our efforts to reduce costs, our restructuring actions may also include the off-shoring or outsourcing of certain operations, services and other functions, as well as reducing our real estate footprint.

Restructuring costs include employee severance and related costs, other contractual termination costs and asset impairments that may result from employee reductions, migration of facilities from higher-cost to lower-cost countries, and the consolidation of facilities within countries. In those geographies where we have either a formal severance plan or a history of consistently providing severance benefits representing a substantive plan (on-going benefit arrangements), we recognize employee severance and related costs when they are both probable and reasonably estimable. In the event employees are required to perform future service beyond their minimum retention period, we record severance charges ratably over the remaining service period of those employees. Severance payments made under a one-time benefit arrangement are recorded upon communication to the affected employees. Contractual termination costs, including facility exit costs, are generally recognized when it has been determined that a liability has been incurred. Restructuring activities may include the disposal or abandonment of assets, including leased right-of-use assets, that require an acceleration of depreciation or an impairment charge reflecting the excess of an asset's book value over fair value or other recoveries.

The recognition of restructuring costs requires that we make certain judgments and estimates regarding the nature, timing and amount of costs associated with the planned initiative. To the extent our actual results differ from our estimates and assumptions, we may be required to revise the estimated liabilities, requiring the recognition of additional restructuring costs or the reduction of liabilities already recognized. At the end of each reporting period, we evaluate the remaining accrued balances to ensure they are properly stated and the utilization of the reserves are for their intended purpose in accordance with developed exit plans.

A summary of our restructuring program activity for the three years ended December 31, 2020, 2019 and 2018 is as follows:


	Severance and Related Costs		Other Contractual Termination Costs(2)		Asset Impairments(3)(4)		Total
Balance at December 31, 2017	$	108	$	1	$	—	$	109
Restructuring provision	175		14		—		189
Reversals of prior charges	(33)		—		—		(33)
Net Current Period Charges(1)	142		14		—		156
Charges against reserve and currency	(156)		(14)		—		(170)
Balance at December 31, 2018	$	94	$	1	$	—	$	95
Restructuring provision	81		19		61		161
Reversals of prior charges	(24)		(5)		(5)		(34)
Net Current Period Charges(1)	57		14		56		127
Charges against reserve and currency	(85)		(11)		(56)		(152)
Balance at December 31, 2019	$	66	$	4	$	—	$	70
Restructuring provision	107		3		6		116
Reversals of prior charges	(21)		(2)		(6)		(29)
Net Current Period Charges(1)	86		1		—		87


Charges against reserve and currency	(74)		(1)		—		(75)
Balance at December 31, 2020	$	78	$	4	$	—	$	82

_____________

(1)Represents net amount recognized within the Consolidated Statements of Income for the years 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.

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

(4)Amounts primarily relate to the exit and abandonment of leased and owned facilities. For the year ended December 31, 2020 and 2019, the charge includes the accelerated write-off of $4 and $39, respectively, for leased right-of-use assets and $2 and $22, respectively, for owned assets and are net of any potential sublease income or other recovery amounts.

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


	Year Ended December 31,
	2020		2019		2018
Charges against reserve and currency	$	(75)	$	(152)	$	(170)
Asset impairments	—		56		—
Effects of foreign currency and other non-cash items	(6)		3		1
Restructuring Cash Payments	$	(81)	$	(93)	$	(169)

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


	Year Ended December 31,
	2020		2019
Retention related severance/bonuses(1)	$	4	$	39
Contractual severance costs(2)	(2)		43
Consulting and other costs(3)	4		20
	$	6	$	102

_____________

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

(2)2019 costs include approximately $38 for estimated severance and other related costs we were contractually required to pay in connection with employees transferred (approximately 2,200) as part of the shared service arrangement entered into with HCL Technologies.

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

Cash payments for restructuring related costs were approximately $26 and $65 in 2020 and 2019, respectively, while the reserve was $21 and $37 at December 31, 2020 and 2019, respectively. The balance at December 31, 2020 is expected to be paid over the next twelve months.

Supplementary Financial Information

12 Months Ended

Dec. 31, 2020

Supplemental Financial Information [Abstract]

Supplementary Financial Information

The components of Other assets and liabilities were as follows:


	December 31,
	2020		2019
Other Current Assets

Income taxes receivable	$	29	$	27
Royalties, license fees and software maintenance	21		25
Restricted cash	23		—
Prepaid expenses	31		29



Advances and deposits	34		30
Other	113		90

Total Other Current Assets	$	251	$	201
Other Long-term Assets
Income taxes receivable	$	7	$	9
Prepaid pension costs	617		451


Internal use software, net	118		122

Restricted cash	43		55

Customer contract costs, net	158		176

Operating lease right-of-use asset	310		319
Deferred compensation plan investments	18		19
Investments in affiliates, at equity(1)	47		46
Other	137		141

Total Other Long-term Assets	$	1,455	$	1,338
Accrued Expenses and Other Current Liabilities

Income taxes payable	$	7	$	7
Other taxes payable	68		79
Operating lease obligation	83		87
Financing lease obligation	2		2
Interest payable	56		38
Restructuring reserves	82		70
Restructuring related costs	21		37

Product warranties	5		6
Dividends payable(2)	59		66
Distributor and reseller rebates/commissions	123		167

Unearned income and other revenue deferrals	140		158
Administration and overhead	52		86
Other	142		181

Total Accrued Expenses and Other Current Liabilities(3)	$	840	$	984
Other Long-term Liabilities
Deferred taxes	$	35	$	37
Income taxes payable	57		64
Operating lease obligation	250		260
Finance lease obligation	7		5
Environmental reserves	9		9

Restructuring reserves	2		—
Other	137		137

Total Other Long-term Liabilities	$	497	$	512

_____________

(1)Refer to Note 12 - Investments in Affiliates, at Equity for additional information.

(2)Represents dividends payable by Xerox Holdings Corporation on Common and Preferred Stock.

(3)Xerox's balance of $750 at December 31, 2020 excludes Interest Payable of $32 and Dividends Payable of $59. Xerox's balance of $918 at December 31, 2019 excludes Dividends Payable of $66.

Cash, Cash Equivalents and Restricted Cash

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 Consolidated Balance Sheets based on when the cash will be contractually or judicially released.

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


	December 31,
	2020		2019
Cash and cash equivalents	$	2,625	$	2,740
Restricted cash
Litigation deposits in Brazil	42		55
Escrow and cash collections related to finance receivable sales(1)	22		—
Other restricted cash	2		—
Total Restricted Cash	66		55


Cash, cash equivalents and restricted cash	$	2,691	$	2,795

__________________________

(1)Represents collections on finance receivables pledged for secured borrowings that will be remitted to lenders in the following month.

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


	December 31,
	2020		2019
Other current assets	$	23	$	—
Other long-term assets	43		55
Total Restricted cash	$	66	$	55

Pension and Other Benefit Liabilities


	December 31,
	2020		2019
Pension liabilities(1)	$	1,474	$	1,616
Accrued compensation liabilities	70		69
Deferred compensation liabilities(2)	22		22
Pension and other benefit liabilities	$	1,566	$	1,707

__________________________

(1)Refer to Note 19 - Employee Benefit Plans for additional information regarding pension liabilities.

(2)As of December 31, 2020 and 2019, includes amounts measured at fair value on a recurring basis of $17 and $18, respectively. Refer to Note 18 - Fair Value of Financial Assets and Liabilities for additional information regarding deferred compensation liabilities.

Summarized Cash Flow Information

Summarized cash flow information is as follows:


	Year Ended December 31,
	2020		2019		2018
Provision for receivables	$	116	$	49	$	40
Provision for inventory	31		24		30
Provision for product warranty	8		12		14
Depreciation of buildings and equipment	87		101		148
Depreciation and obsolescence of equipment on operating leases	183		225		249
Amortization of internal use software	42		59		81

Amortization of acquired intangible assets	56		45		48
Amortization of customer contract costs(1)	85		93		100
Cost of additions to land, buildings and equipment	44		41		55
Cost of additions to internal use software	30		24		35
Common stock dividends - Xerox Holdings	216		229		255
Preferred stock dividends - Xerox Holdings	14		14		14
Payments to noncontrolling interests	3		14		17
Repurchases related to stock-based compensation - Xerox Holdings	19		28		9

__________________________

(1)Amortization of customer contract costs is reported in Decrease (increase) in other current and long-term assets on the Consolidated Statements of Cash Flows. Refer to Note 2 - Revenue - Contract Costs for additional information.

Debt

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Debt

Short-term borrowings were as follows:


	December 31,
	2020		2019


Short-term debt and current portion of long-term debt
Xerox Holdings Corporation	$	—	$	—
Xerox Corporation	—		1,049
Xerox - Other Subsidiaries(1)	394		—
Total	$	394	$	1,049

_____________

(1)Represents subsidiaries of Xerox Corporation.

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

Long-term debt was as follows:


					December 31,
	Stated Rate		Weighted Average Interest Rates at December 31, 2020(1)		2020		2019
Xerox Holdings Corporation







Senior Notes due 2025	5.00	%	4.95	%	$	750	$	—
Senior Notes due 2028	5.50	%	5.40	%	750		—
Subtotal - Xerox Holdings Corporation					$	1,500	$	—
Xerox Corporation
Senior Notes due 2020					$	—	$	313
Senior Notes due 2020					—		362
Senior Notes due 2020					—		376
Senior Notes due 2021					—		1,062
Senior Notes due 2022	4.07	%	4.07	%	300		300
Senior Notes due 2023(2)	4.38	%	3.68	%	1,000		1,000
Senior Notes due 2024	3.80	%	3.84	%	300		300
Senior Notes due 2035	4.80	%	4.84	%	250		250
Senior Notes due 2039	6.75	%	6.78	%	350		350
Subtotal - Xerox Corporation					$	2,200	$	4,313
Xerox - Other Subsidiaries(3)
Secured Borrowing - July 2020	1.76	%	1.73	%	$	267	$	—
Secured Borrowing - December 2020	1.74	%	1.76	%	500		—
Subtotal - Xerox - Other Subsidiaries					$	767	$	—







Principal debt balance					$	4,467	$	4,313
Xerox Holdings Corporation - Debt issuance costs					(13)		—
Xerox Corporation - Debt issuance costs					(11)		(17)
Xerox - Other subsidiaries - Debt issuance costs					(3)		—
Subtotal - Debt issuance costs					(27)		(17)
Unamortized premium (discount)					3		(16)
Fair value adjustments(4)
Terminated swaps					1		1
Current swaps					—		1
Less: current maturities					(394)		(1,049)
Total Long-term Debt					$	4,050	$	3,233

_____________

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

(2)As a result of the downgrade of our debt ratings in December 2018, the original coupon rate of 3.625% increased by 0.50% to 4.125% effective March 15, 2019. As a result of the downgrade of our debt ratings in August 2020, the coupon rate of 4.125% increased by 0.25% to 4.375% effective September 15, 2020.

(3)The rates disclosed for Other Subsidiaries of Xerox Corporation are variable interest rates. Refer to the Secured Borrowings and Collateral section below for additional information.

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

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


	2021(1)		2022		2023		2024		2025		Thereafter		Total
Xerox Holdings Corporation	$	—	$	—	$	—	$	—	$	750	$	750	$	1,500
Xerox Corporation	—		300		1,000		300		—		600		2,200
Xerox - Other Subsidiaries(2)	395		291		81		—		—		—		767
Total	$	395	$	591	$	1,081	$	300	$	750	$	1,350	$	4,467

_____________

(1)Current portion of long-term debt maturities for 2021 are $96, $107, $100 and $92 for the first, second, third and fourth quarters, respectively.

(2)Represents subsidiaries of Xerox Corporation.

Senior Notes

In August 2020, Xerox Holdings Corporation issued $550 of 5.00% Senior Notes due August 2025 (the "2025 Senior Notes") at par and $550 of 5.50% 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 Corporation 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 Corporation to Xerox Corporation and used to repay $362 aggregate principal amount of 3.50% Senior Notes of Xerox Corporation and $376 aggregate principal amount of 2.75% Senior Notes of Xerox Corporation, which were both due to mature in third quarter 2020. Xerox Corporation also used the balance of the net proceeds to repay in October 2020 $750 of the 4.50% Senior Notes due in May 2021. (Refer to the section Early Extinguishment of Senior Notes below for additional information regarding the repayment of the Senior Notes due May 2021, as well as the Xerox Statement of Shareholder's Equity for additional information regarding the contribution received from Xerox Holdings Corporation).

Early Extinguishment of Senior Notes

In October 2020, we completed the early redemption of $750 of the $1,062 of Xerox Corporation 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 of $18 (which included the write-off of debt carrying value adjustments).

In December 2020, we completed the early redemption of the remaining $312 of Xerox Corporation 4.50% Senior Notes due May 2021, for $317 in cash consideration, which included a redemption premium of $5. The early redemption resulted in a net loss of $8 (which included the write-off of debt carrying value adjustments).

Credit Facility

We have a $1.8 billion unsecured revolving Credit Facility with a group of lenders, which matures in August 2022. The Credit Facility includes a $250 letter of credit sub-facility as well as an accordion feature that allows us to increase (from time to time, with willing lenders) the overall size of the facility by $750. We also have the right to request a one year extension on any anniversary of the restated amendment date.

Proceeds from any borrowings under the Credit Facility can be used to provide working capital for the Company and its subsidiaries and for general corporate purposes. The Credit Facility is available, without sublimit, to certain of our qualifying subsidiaries. Our obligations under the Credit Facility are unsecured and are not currently guaranteed by any of our subsidiaries. Any borrowings under the Credit Facility by Xerox Corporation will be guaranteed by Xerox Holdings Corporation. Any domestic subsidiary that guarantees more than $100 of Xerox Corporation debt must also guaranty our obligations under the Credit Facility. In the event that any of our subsidiaries borrows under the Credit Facility, its borrowings thereunder would be guaranteed by us. At December 31, 2020 and 2019, we had no outstanding borrowings or letters of credit under the amended and restated 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 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 Covenant Modification Period, Xerox maintain a ratio of net debt for borrowed money to consolidated EBITDA of not greater than 4.25x (with a cap on cash netting of $1.75 billion), in lieu of the 4.25x total debt for borrowed money to consolidated EBITDA ratio requirement applicable prior to the Amendment.

Borrowings under the Credit Facility bear interest at our choice, at either (a) a Base Rate as defined in the Credit Facility agreement, plus a spread that varies between 0.000% and 0.700% depending on our credit rating at the time of borrowing, or (b) LIBOR plus an all-in spread that varies between 1.000% and 1.700% depending on our credit rating at the time of borrowing. Based on our credit rating as of December 31, 2020, the applicable all-in spreads for the Base Rate and LIBOR borrowing were 0.375% and 1.375%, respectively.

An annual facility fee is payable to each lender in the Credit Facility at a rate that varies between 0.125% and 0.300% depending on our credit rating. Based on our credit rating as of December 31, 2020 the applicable rate is 0.25%.

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

(a)Minimum Unrestricted Cash during the Covenant Modification Period, at all times, maintain Unrestricted Cash (as defined in the amended and restated Credit Facility) in an amount not less than $1,000.

(b)Maximum leverage ratio during the Covenant Modification Period (a quarterly test that is calculated as net debt for borrowed money divided by consolidated EBITDA, both as defined in the amended and restated Credit Facility - with a cap on cash netting of $1.75 billion) of 4.25x. This temporarily replaces the maximum leverage ratio (a quarterly test that is calculated as debt for borrowed money divided by consolidated EBITDA, both as defined in the amended and restated Credit Facility) of 4.25x.

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

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

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

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 debt has a variable interest rate based on LIBOR plus a spread 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 replenished the cash used in May 2020 to repay the $313 aggregate principal amount of 2.80% Senior Notes due 2020 of Xerox Corporation.

In December 2020, we entered into a second secured loan agreement with a financial institution where we sold $610 of U.S. based finance receivables to an SPE. The purchase by the SPE was funded through an amortizing secured loan to the SPE from the financial institution of $500. The debt has a variable interest rate based on the financial institution's cost of funds plus a spread and an expected life of approximately 2.5 years with half projected to be repaid within the first year based on collections of the underlying portfolio of receivables. A portion of the proceeds from this debt was used to repay the remaining $312 principal amount of 4.50% Senior Notes due May 2021 of Xerox Corporation (see Early Extinguishment of Senior Notes above for additional information).

The sales of the receivables to the SPEs were structured as "true sales at law," and we have received opinions to that effect from outside legal counsel. However, the transactions were accounted for as secured borrowings as we consolidate the SPEs since we have both the power to direct the activities that most significantly impact the SPEs'

economic performance through our role as servicer of all the receivables held by the SPEs, and the obligation through variable interests in the SPEs to absorb losses or receive benefits that could potentially be significant to the SPEs. As a result, the assets of the SPEs are not available to satisfy any of our other obligations. Conversely, the credit holders of these SPEs do not have legal recourse to the Company’s general credit.

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


	December 31, 2020
Assets held by SPEs
Billed portion of finance receivables, net	$	28
Finance receivables, net	350
Finance receivables due after one year, net	510
Equipment on operating leases, net	8
Restricted cash(1)	22
Total Assets	$	918
Liabilities held by SPEs
Current portion of long-term debt, net(2)	$	394
Long term debt, net(3)	370
Total Liabilities	$	764

_____________

(1)Restricted cash is included in Other current assets in our Consolidated Balance Sheet.

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

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

Interest

Interest paid on our short-term and long-term debt amounted to $181, $221 and $231 for the years ended December 31, 2020, 2019 and 2018, respectively.

Interest expense and interest income was as follows:


	Year Ended December 31,
	2020		2019		2018
Interest expense(1) (2)	$	215	$	236	$	244
Interest income(3)	240		260		283

_____________

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

(2)2020 Interest expense for Xerox Corporation includes $32 of interest paid to Xerox Holdings Corporation as reimbursement for the interest expense incurred on the Xerox Holdings Corporation Senior Notes as the net proceeds from those notes were contributed in full to Xerox Corporation and used to repay existing debt of Xerox.

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

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

Financial Instruments

12 Months Ended

Dec. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Financial Instruments

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

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

Interest Rate Risk Management

We use interest rate swap and interest rate cap 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

In 2020 we terminated our remaining pay variable/receive fixed interest rate swaps with the notional amount of $200 and net asset fair value of $4 prior to termination. In 2019, we terminated an interest rate swap with a notional amount of $100 and an immaterial net asset fair value. In both instances, 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. Prior to termination no ineffective portion was recorded to earnings for the years ended December 31, 2020, 2019 and 2018. The corresponding net fair value adjustment to the hedged debt of $(4) will be recognized in earnings concurrently with the remaining term of the related debt, which may include early extinguishment. During the period from 2004 to 2011, we also early terminated several interest rate swaps that were designated as fair value hedges of certain debt instruments. The associated net fair value adjustments to the debt instruments for these terminated swaps were likewise recognized in earnings concurrently with the remaining term of the related debt, which may include early extinguishment.

The remaining unamortized debt fair value adjustment associated with all terminated swaps was $1 and $1 at December 31, 2020 and 2019, respectively. In 2020, 2019 and 2018, the amortization of these fair value adjustments reduced interest expense by $2, $1 and $3, respectively, and the loss on early extinguishment of debt in 2020 by $2.

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:

•Foreign currency-denominated assets and liabilities

•Forecasted purchases, and sales in foreign currency

At December 31, 2020, we had outstanding forward exchange and purchased option contracts with gross notional values of $1,161, with terms of less than 12 months. At December 31, 2020, approximately 81% of these contracts mature within three months, 9% in three to six months and 10% in six to twelve months. The associated exposures being hedged at December 31, 2020 were higher by 6.4%, as compared to December 31, 2019. There has not been any material changes in our hedging strategy during 2020.

The following is a summary of the primary hedging positions and corresponding fair values as of December 31, 2020:


Currencies Hedged (Buy/Sell)	Gross Notional Value		Fair Value Asset(1)
Japanese Yen/U.S. Dollar	$	398	$	6
Euro/U.K. Pound Sterling	237		—
Japanese Yen/Euro	186		(2)
U.S. Dollar/Euro	90		(1)
U.S. Dollar/Canadian Dollar	46		(1)
Euro/U.S. Dollar	46		—
U.K. Pound Sterling/Euro	37		—
U.S. Dollar/Japanese Yen	31		—

Euro/Danish Krone	21		—
U.S. Dollar/Russian Ruble	15		—
U.S. Dollar/Israeli Shekel	9		—





U.S. Dollar/Brazilian Real	9		—
Euro/Norwegian Kroner	4		—




All Other	32		—
Total Foreign exchange hedging	$	1,161	$	2

____________

(1)Represents the net receivable (payable) amount included in the Consolidated Balance Sheet at December 31, 2020.

Foreign Currency Cash Flow Hedges

We designate a portion of our foreign currency derivative contracts as cash flow hedges of our foreign currency-denominated inventory purchases, sales and expenses. No amount of ineffectiveness was recorded in the Consolidated Statements of Income for these designated cash flow hedges and all components of each derivative’s gain or loss were included in the assessment of hedge effectiveness. The net asset (liability) fair value of these contracts were $2 and $(4) as of December 31, 2020 and 2019, respectively.

Summary of Derivative Instruments Fair Value

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


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

Interest rate swaps	Other long-term assets	—		1

	Net Designated Derivative Asset (Liability)	$	2	$	(3)

Derivatives NOT Designated as Hedging Instruments
Foreign exchange contracts – forwards	Other current assets	$	3	$	1
	Accrued expenses and other current liabilities	(3)		(3)
	Net Undesignated Derivative Liability	$	—	$	(2)

Summary of Derivatives	Total Derivative Assets	$	7	$	3
	Total Derivative Liabilities	(5)		(8)
	Net Derivative Asset (Liability)	$	2	$	(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 and (losses).

Designated Derivative Instruments Gains (Losses)

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


		Year Ended December 31,
Derivatives in Fair Value Relationships	Location of Gain (Loss) Recognized in Income	Derivative (Loss) Gain Recognized in Income						Hedged Item Gain (Loss) Recognized in Income
		2020		2019		2018		2020		2019		2018
Interest rate contracts	Interest expense	$	(1)	$	4	$	(3)	$	1	$	(4)	$	3


	Year Ended December 31,
Derivatives in Cash Flow Hedging Relationships	Derivative Gain Recognized in OCI (Effective Portion)						Location of Derivative Gain (Loss) Reclassified from AOCI into Income (Effective Portion)	(Loss) Gain Reclassified from AOCI to Income (Effective Portion)
	2020		2019		2018			2020		2019		2018
Foreign exchange contracts – forwards/options	$	4	$	2	$	9	Cost of sales	$	(1)	$	9	$	(14)

For the three years ended December 31, 2020, 2019 and 2018 no amount of ineffectiveness was recorded in the Consolidated Statements of Income for these designated cash flow hedges. 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.

At December 31, 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 (losses) on non-designated derivative instruments:


		Year Ended December 31,
Derivatives NOT Designated as Hedging Instruments	Location of Derivative Gain (Loss)	2020		2019		2018
Foreign exchange contracts – forwards	Other expense – Currency gains (losses), net	$	14	$	(6)	$	21

For the three years ended December 31, 2020, 2019 and 2018, we recorded Currency losses, net of $3, $7 and $5, 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

12 Months Ended

Dec. 31, 2020

Fair Value Disclosures [Abstract]

Fair Value of Financial Assets and Liabilities

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


	As of December 31,
	2020		2019
Assets
Foreign exchange contracts - forwards	$	6	$	2
Foreign currency options	1		—
Interest rate swaps	—		1

Deferred compensation investments in mutual funds	18		19
Total	$	25	$	22
Liabilities
Foreign exchange contracts - forwards	$	5	$	8


Deferred compensation plan liabilities	17		18
Total	$	22	$	26

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

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

Summary of Other Financial Assets and Liabilities

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


	December 31, 2020				December 31, 2019
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Cash and cash equivalents	$	2,625	$	2,625	$	2,740	$	2,740
Accounts receivable, net	883		883		1,236		1,236
Short-term debt and current portion of long-term debt	394		396		1,049		1,054
Long-term debt
Xerox Holdings Corporation	$	1,493	$	1,596	$	—	$	—
Xerox Corporation	2,187		2,298		3,233		3,331
Xerox - Other Subsidiaries(1)	370		372		—		—
Total Long-term debt	$	4,050	$	4,266	$	3,233	$	3,331

_____________

(1)Represents subsidiaries of Xerox Corporation.

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.

- Definition

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

12 Months Ended

Dec. 31, 2020

Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]

Employee Benefit Plans

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

Where legally possible, we have amended our major defined benefit pension plans to freeze current benefits and eliminate benefit accruals for future service, including our primary U.S. defined benefit plan for salaried employees, the Canadian Salary Pension Plan and the U.K. Final Salary Pension Plan. In certain Non-U.S. plans, we are required to continue to consider salary increases and inflation in determining the benefit obligation related to prior service. Our pension plan in the Netherlands was changed to a Collective Defined Contribution (CDC) plan. From a Company risk perspective, this plan operates just like a defined contribution plan as the company is only responsible for a contribution for annual benefit accruals under 5-year agreements. Although the Company's risk has been mitigated, under U.S. GAAP this plan doesn’t meet the definition of a defined contribution plan and therefore is accounted for as a defined benefit plan.

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

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


	Pension Benefits
	U.S. Plans				Non-U.S. Plans				Retiree Health
	2020		2019		2020		2019		2020		2019
Change in Benefit Obligation:
Benefit obligation, January 1	$	3,598	$	3,234	$	6,492	$	6,007	$	385	$	385
Service cost	2		2		20		22		2		2
Interest cost	196		218		113		153		12		15
Plan participants' contributions	—		—		3		3		10		10
Actuarial loss	240		564		439		472		4		8
Currency exchange rate changes	—		—		374		114		3		5
Plan Amendments/Curtailments	—		—		2		(2)		(11)		—

Benefits paid/settlements	(289)		(420)		(284)		(270)		(35)		(40)
Other	—		—		—		(7)		—		—
Benefit Obligation, December 31	$	3,747	$	3,598	$	7,159	$	6,492	$	370	$	385

Change in Plan Assets:
Fair value of plan assets, January 1	$	2,493	$	2,358	$	6,385	$	5,729	$	—	$	—
Actual return on plan assets	563		529		637		680		—		—
Employer contributions	35		26		104		115		25		30
Plan participants' contributions	—		—		3		3		10		10
Currency exchange rate changes	—		—		354		135		—		—
Benefits paid/settlements	(289)		(420)		(284)		(270)		(35)		(40)
Other	—		—		—		(7)		—		—
Fair Value of Plan Assets, December 31	$	2,802	$	2,493	$	7,199	$	6,385	$	—	$	—

Net Funded Status at December 31(1)	$	(945)	$	(1,105)	$	40	$	(107)	$	(370)	$	(385)

Amounts Recognized in the Consolidated Balance Sheets:
Other long-term assets	$	—	$	—	$	617	$	451	$	—	$	—
Accrued compensation and benefit costs	(24)		(25)		(24)		(22)		(30)		(33)
Pension and other benefit liabilities	(921)		(1,080)		(553)		(536)		—		—
Post-retirement medical benefits	—		—		—		—		(340)		(352)
Net Amounts Recognized	$	(945)	$	(1,105)	$	40	$	(107)	$	(370)	$	(385)

Accumulated Benefit Obligation	$	3,747	$	3,598	$	7,018	$	6,326

_____________

(1)Includes under-funded and unfunded plans.

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


	Pension Benefits
	U.S. Plans				Non-U.S. Plans				Retiree Health
	2020		2019		2020		2019		2020		2019
Net actuarial loss (gain)	$	874	$	1,059	$	1,471	$	1,462	$	(23)	$	(29)
Prior service (credit) cost	(1)		(3)		27		22		(99)		(164)
Total Pre-tax loss (gain)	$	873	$	1,056	$	1,498	$	1,484	$	(122)	$	(193)

Aggregate information for pension plans with an Accumulated benefit obligation in excess of plan assets is presented below. Information for Retiree Health plans with an accumulated post-retirement benefit obligation in excess of plan assets has been disclosed in the preceding table on Benefit obligations and Net funded status as all Retiree Health plans are unfunded.


	December 31, 2020				December 31, 2019
	Accumulated Benefit Obligation		Fair Value of Plan Assets		Accumulated Benefit Obligation		Fair Value of Plan Assets
Underfunded Plans:
U.S.	$	3,408	$	2,802	$	3,261	$	2,493
Non U.S.	921		873		767		697

Unfunded Plans:
U.S.	$	339	$	—	$	337	$	—
Non U.S.	502		—		469		—

Total Underfunded and Unfunded Plans:
U.S.	$	3,747	$	2,802	$	3,598	$	2,493
Non U.S.	1,423		873		1,236		697
Total	$	5,170	$	3,675	$	4,834	$	3,190

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


	December 31, 2020				December 31, 2019
	Benefit Obligation		Fair Value of Plan Assets		Benefit Obligation		Fair Value of Plan Assets
Underfunded Plans:
U.S.	$	3,408	$	2,802	$	3,261	$	2,493
Non U.S.	942		873		780		697

Unfunded Plans:
U.S.	$	339	$	—	$	337	$	—
Non U.S.	512		—		479		—

Total Underfunded and Unfunded Plans:
U.S.	$	3,747	$	2,802	$	3,598	$	2,493
Non U.S.	1,454		873		1,259		697
Total	$	5,201	$	3,675	$	4,857	$	3,190

Our pension plan assets and benefit obligations at December 31, 2020 were as follows:


	Fair Value of Pension Plan Assets		Pension Benefit Obligations		Net Funded Status
U.S. funded	$	2,802	$	3,408	$	(606)
U.S. unfunded	—		339		(339)
Total U.S.	2,802		3,747		(945)
U.K.	4,707		4,218		489
Netherlands	1,266		1,226		40
Canada	794		797		(3)
Germany	—		395		(395)

Other	432		523		(91)
Total	$	10,001	$	10,906	$	(905)

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


	Year Ended December 31,
	Pension Benefits
	U.S. Plans						Non-U.S. Plans						Retiree Health
	2020		2019		2018		2020		2019		2018		2020		2019		2018
Components of Net Periodic Benefit Costs:
Service cost	$	2	$	2	$	2	$	20	$	22	$	27	$	2	$	2	$	4
Interest cost(1)	196		218		63		113		153		149		12		15		23
Expected return on plan assets(2)	(217)		(210)		(67)		(191)		(233)		(244)		—		—		—
Recognized net actuarial loss (gain)	27		24		22		58		43		56		(1)		(5)		—
Amortization of prior service credit	(2)		(2)		(2)		(1)		(2)		(4)		(76)		(77)		(19)
Recognized settlement loss	53		93		173		1		1		1		—		—		—
Recognized curtailment gain	—		—		—		(1)		—		(1)		—		—		—
Defined Benefit Plans	59		125		191		(1)		(16)		(16)		(63)		(65)		8
Defined contribution plans	1		26		37		18		23		29		n/a		n/a		n/a
Net Periodic Benefit Cost (Credit)	60		151		228		17		7		13		(63)		(65)		8
Other changes in plan assets and benefit obligations recognized in Other Comprehensive Income (Loss):
Net actuarial (gain) loss(3)	(105)		243		(50)		(9)		24		33		4		8		(63)
Prior service cost (credit)	—		—		—		4		—		41		(11)		—		(234)
Amortization of net actuarial (loss) gain	(80)		(117)		(195)		(59)		(44)		(57)		1		5		—
Amortization of net prior service credit	2		2		2		1		2		4		76		77		19
Curtailment gain	—		—		—		1		—		1		—		—		—
Total Recognized in Other Comprehensive Income (Loss)(4)	(183)		128		(243)		(62)		(18)		22		70		90		(278)
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income (Loss)	$	(123)	$	279	$	(15)	$	(45)	$	(11)	$	35	$	7	$	25	$	(270)

_____________

(1)Interest cost for Pension Benefits includes interest expense on non-TRA obligations of $184, $243 and $258 and interest expense (income) directly allocated to TRA participant accounts of $125, $128 and $(46) for the years ended December 31, 2020, 2019 and 2018, respectively.

(2)Expected return on plan assets includes expected investment income on non-TRA assets of $283, $315 and $357 and actual investment income (loss) on TRA assets of $125, $128 and $(46) for the years ended December 31, 2020, 2019 and 2018, respectively.

(3)The non-U.S. plans Net actuarial (gain) loss for 2018 reflects an out-of-period adjustment in third quarter 2018 of $(53) to correct an overstated benefit obligation for our U.K. Final Salary Pension Plan at December 31, 2017. Refer to Note 1 - Basis of Presentation and Summary of Significant Accounting Policies for additional information regarding this adjustment.

(4)Amounts represent the pre-tax effect included in Other comprehensive income (loss). Refer to Note 25 - Other Comprehensive Income (Loss) for the related tax effects and the net of tax amounts.

Plan Amendments

Pension:

In October 2018, the High Court of Justice in the United Kingdom (the High Court) ruled that Lloyds Bank PLC was required to equalize benefits payable to men and women under its U.K. defined benefit pension plans by amending those plans to increase the pension benefits payable to participants that accrued such benefits during the period from 1990 to 1997. The inequalities arose from statutory differences in the retirement ages and rates of accrual of benefits for men and women related to Guaranteed Minimum Pension (GMP) benefits that are included in U.K. defined benefit pension plans.

Based on the above ruling, we currently estimate the cost of equalization under the minimum cost approach permitted by the High Court’s ruling to be approximately 1.2% of our U.K. defined benefit plan obligation at December 31, 2018 or approximately GBP 33 million (approximately USD $42). This increase in the benefit obligation was recorded as a plan amendment in 2018. In November 2020, the High Court made another ruling in this matter related to benefit transfers out of the plan prior to the date of the 2018 ruling, which increased our estimated cost of equalization by a further GBP 3 million (approximately USD $4). Consistent with our approach to the estimate in 2018, the increase in the benefit obligation was recorded as a plan amendment in 2020 and together with the 2018 adjustment will be amortized to future net periodic benefit costs as a prior service cost (total approximately USD $2 per year covering both adjustments).

The aggregate amount recorded for this matter continues to reflect our best estimate of the impact from these rulings. However, several significant uncertainties remain and therefore our estimate is subject to future change and adjustment. In particular, the cost is very sensitive to i) the method of GMP equalization; ii) actuarial assumptions and market conditions; iii) the benefit structure of our plan and operational practices; and iv) the demographic profile of our plan. In addition, we are continuing to evaluate the acceptable methodologies that the High Court has determined, and we still need to agree upon the appropriate methodology with our plan trustees.

Retiree Health Plans:

In October 2020, we reduced the level of Company cost sharing for retiree health care benefits provided to certain existing non-union retirees. This change to our U.S. Retiree Health Plan is effective January 1, 2021. The change in cost sharing is considered a negative plan amendment resulting in a reduction in the postretirement benefit obligation of $11. The amount for the plan amendment will be amortized to future net periodic benefit costs as a prior service credit.

In December 2018, we amended our Canadian Retiree Health Plan to eliminate coverage for certain future and existing retirees. This negative plan amendment resulted in a reduction in the postretirement benefit obligation of $19, which is being amortized to future net periodic benefit costs as a prior service credit.

In October 2018, we amended our U.S. Retiree Health Plan effective January 1, 2019, to reduce certain benefits for existing non-union retirees through the reduction or elimination of coverage or cost-sharing subsidies for retiree health care and life insurance costs. This negative plan amendment resulted in a reduction in the postretirement benefit obligation of $283, which consisted of $216 for the plan amendment and an actuarial gain of $67 related to the required plan remeasurement upon amendment. The amount for the plan amendment is being amortized to future net periodic benefit costs as a prior service credit.

Plan Assets

Current Allocation

As of the 2020 and 2019 measurement dates, the global pension plan assets were $10,001 and $8,878, respectively. These assets were invested among several asset classes.

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


	December 31, 2020
	U.S. Plans										Non-U.S. Plans
Asset Class	Level 1		Level 2		Level 3		Assets measured at NAV(1)		Total		Level 1		Level 2		Level 3		Assets measured at NAV(1)		Total
Cash and cash equivalents	$	17	$	—	$	—	$	—	$	17	$	401	$	—	$	—	$	—	$	401
Equity Securities:
U.S.	224		—		—		39		263		178		56		—		—		234
International	243		—		—		204		447		559		321		—		151		1,031
Fixed Income Securities:
U.S. treasury securities	—		325		—		—		325		—		77		—		—		77
Debt security issued by government agency	—		78		—		—		78		—		2,026		—		—		2,026
Corporate bonds	—		1,252		—		—		1,252		—		921		—		—		921

Derivatives	—		11		—		—		11		—		488		—		—		488
Real estate	—		—		31		10		41		—		—		208		108		316
Private equity/venture capital	—		—		—		209		209		—		—		3		1,557		1,560
Guaranteed insurance contracts	—		—		—		—		—		—		—		86		—		86
Other(2)(3)	7		—		—		152		159		21		38		—		—		59
Total Fair Value of Plan Assets	$	491	$	1,666	$	31	$	614	$	2,802	$	1,159	$	3,927	$	297	$	1,816	$	7,199

_____________

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

(2)Other NAV includes mutual funds of $73 (measured at NAV) which are invested approximately 70% in fixed income securities and approximately 30% in equity securities.

(3)Other Level 1 includes net non-financial assets of $7 U.S. and $21 Non-U.S., respectively, such as due to/from broker, interest receivables and accrued expenses.


	December 31, 2019
	U.S. Plans										Non-U.S. Plans
Asset Class	Level 1		Level 2		Level 3		Assets measured at NAV(1)		Total		Level 1		Level 2		Level 3		Assets measured at NAV(1)		Total
Cash and cash equivalents	$	9	$	—	$	—	$	—	$	9	$	421	$	—	$	—	$	—	$	421
Equity Securities:
U.S.	182		—		—		39		221		132		52		—		—		184
International	193		—		—		191		384		462		302		—		118		882
Fixed Income Securities:
U.S. treasury securities	—		316		—		—		316		—		47		—		—		47
Debt security issued by government agency	—		67		—		—		67		—		1,825		—		—		1,825
Corporate bonds	—		1,119		—		—		1,119		—		841		—		—		841

Derivatives	—		45		—		—		45		—		186		—		—		186
Real estate	—		—		5		10		15		—		—		219		116		335
Private equity/venture capital	—		—		—		199		199		—		—		5		1,527		1,532
Guaranteed insurance contracts	—		—		—		—		—		—		—		90		—		90
Other(2)(3)	(36)		—		—		154		118		11		31		—		—		42
Total Fair Value of Plan Assets	$	348	$	1,547	$	5	$	593	$	2,493	$	1,026	$	3,284	$	314	$	1,761	$	6,385

_____________

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

(2)Other NAV includes mutual funds of $76 (measured at NAV) which are invested approximately 75% in fixed income securities and approximately 25% in equity securities.

(3)Other Level 1 includes net non-financial (liabilities) assets of $(36) U.S. and $11 Non-U.S., respectively, such as due to/from broker, interest receivables and accrued expenses.

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


	U.S.		Non-U.S.
	Real Estate		Real Estate		Private Equity/Venture Capital		Guaranteed Insurance Contracts		Total
Balance at December 31, 2018	$	—	$	210	$	6	$	92	$	308
Purchases	5		—		—		2		2



Sales	—		—		(5)		(4)		(9)

Unrealized gains	—		9		4		2		15
Currency translation	—		—		—		(2)		(2)

Balance at December 31, 2019	$	5	$	219	$	5	$	90	$	314
Purchases	27		—		3		—		3

Sales	—		(15)		—		(4)		(19)



Unrealized losses	(1)		(8)		(4)		(8)		(20)
Currency translation	—		12		(1)		8		19

Balance at December 31, 2020	$	31	$	208	$	3	$	86	$	297

Level 3 Valuation Method

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

Investment Strategy

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


	2020		2019
	U.S.	Non-U.S.	U.S.	Non-U.S.
Equity investments	23%	15%	23%	14%
Fixed income investments	61%	44%	61%	46%
Real estate	6%	4%	6%	5%
Private equity/venture capital	8%	22%	8%	24%
Other	2%	15%	2%	11%
Total Investment Strategy	100%	100%	100%	100%

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

Expected Long-term Rate of Return

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

Contributions

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


	Year Ended December 31,
	2020		Estimated 2021
U.S. Plans	$	35	$	25
Non-U.S. Plans	104		105
Total	$	139	$	130

Retiree Health	$	25	$	30

Contributions to our U.S. Plans in 2020 include $25 associated with our non-qualified plan and $10 for one of our tax-qualified defined benefit plans. Estimated contributions to our U.S. Plans in 2021 are associated with our non-qualified plan as no other amounts were required to meet the minimum funding requirements for our tax qualified plans.

Estimated Future Benefit Payments

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


	Pension Benefits
	U.S.		Non-U.S.		Total		Retiree Health
2021	$	360	$	289	$	649	$	30
2022	288		294		582		29
2023	285		301		586		28
2024	280		306		586		26
2025	274		312		586		25
Years 2026-2030	1,214		1,647		2,861		107

Assumptions

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


	Pension Benefits
	2020				2019				2018
	U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.
Discount rate	2.2	%	1.3	%	3.1	%	1.8	%	4.2	%	2.6	%
Rate of compensation increase	0.1	%	2.6	%	0.2	%	2.6	%	0.2	%	2.6	%
Interest crediting rate	2.8	%	1.5	%	2.8	%	1.5	%	2.8	%	1.5	%


	Retiree Health
	2020		2019		2018
Discount rate	2.2	%	3.0	%	4.1	%

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


	Pension Benefits
	2021				2020				2019				2018
	U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.
Discount rate	2.2	%	1.3	%	3.1	%	1.8	%	4.2	%	2.6	%	3.6	%	2.3	%
Expected return on plan assets	5.9	%	3.1	%	6.0	%	3.3	%	6.0	%	4.0	%	5.8	%	3.8	%
Rate of compensation increase	0.1	%	2.6	%	0.2	%	2.6	%	0.2	%	2.6	%	0.2	%	2.6	%
Interest crediting rate	2.8	%	1.5	%	2.8	%	1.5	%	2.8	%	1.5	%	2.8	%	1.5	%


	Retiree Health
	2021		2020		2019		2018
Discount rate	2.2	%	3.0	%	4.1	%	3.5	%

_____________

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

Assumed health care cost trend rates were as follows:


	December 31,
	2020		2019
Health care cost trend rate assumed for next year	5.7	%	6.0	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)	4.3	%	4.3	%
Year that the rate reaches the ultimate trend rate	2025		2026

Defined Contribution Plans

We have post-retirement savings and investment plans in several countries, including the U.S., the U.K. and Canada. In many instances, employees who participated in the defined benefit pension plans that have been amended to freeze future service accruals were transitioned to an enhanced defined contribution plan. In these plans employees are allowed to contribute a portion of their salaries and bonuses to the plans, and we match a portion of the employee contributions. We recorded charges related to our defined contribution plans of $19 in 2020, $49 in 2019 and $66 in 2018.

- Definition

The entire disclosure for retirement benefits.

+ References

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+ Details

Income and Other Taxes

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Income and Other Taxes

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


	Year Ended December 31,
	2020		2019		2018
Domestic income	$	353	$	679	$	331
Foreign (loss) income	(101)		143		218
Income before Income Taxes and Equity Income	$	252	$	822	$	549

The components of Income tax expense from continuing operations were as follows:


	Year Ended December 31,
	2020		2019		2018
Federal Income Taxes
Current	$	3	$	(3)	$	37
Deferred	58		98		83
Foreign Income Taxes
Current	19		43		46
Deferred	(34)		5		57
State Income Taxes
Current	8		15		29
Deferred	10		21		(5)
Income Tax Expense	$	64	$	179	$	247

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


	Year Ended December 31,
	2020		2019		2018
U.S. federal statutory income tax rate	21.0	%	21.0	%	21.0	%
Nondeductible expenses	4.1	%	1.3	%	3.7	%
Effect of tax law changes	(10.5)	%	(4.6)	%	14.5	%
Change in valuation allowance for deferred tax assets	9.9	%	2.0	%	0.6	%
State taxes, net of federal benefit	5.5	%	3.5	%	2.3	%
Audit and other tax return adjustments	1.4	%	0.6	%	(1.8)	%
Tax-exempt income, credits and incentives	(5.9)	%	(2.1)	%	(2.2)	%
Foreign rate differential adjusted for U.S. taxation of foreign profits(1)	(2.6)	%	0.1	%	4.8	%
Stock-based compensation	2.3	%	(0.3)	%	0.2	%
Other	0.2	%	0.3	%	1.9	%
Effective Income Tax Rate	25.4	%	21.8	%	45.0	%

_____________

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

On a consolidated basis, including discontinued operations, we paid a total of $32, $94 and $80 in income taxes to federal, foreign and state jurisdictions during the three years ended December 31, 2020, 2019 and 2018, respectively.

Total income tax expense (benefit) was allocated to the following items:


	Year Ended December 31,
	2020		2019		2018
Pre-tax income	$	64	$	179	$	247
Discontinued operations(1)	—		95		10


Common shareholders' equity:
Changes in defined benefit plans	43		(55)		131

Cash flow hedges	1		(1)		5
Translation adjustments	(3)		8		(9)
Retained Earnings	—		—		36
Total Income Tax Expense	$	105	$	226	$	420

_____________

(1)Refer to Note 6 - Divestitures for additional information regarding discontinued operations.

Unrecognized Tax Benefits and Audit Resolutions

We recognize tax liabilities when, despite our belief that our tax return positions are supportable, we believe that certain positions may not be fully sustained upon review by tax authorities. Each period, we assess uncertain tax positions for recognition, measurement and effective settlement. Benefits from uncertain tax positions are measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement - the more-likely-than-not recognition threshold. Where we have determined that our tax return filing position does not satisfy the more likely than not recognition threshold, we have recorded no tax benefits. These assessments require the use of considerable estimates and judgments and can increase or decrease our effective tax rate, as well as impact our operating results. A difference in the ultimate resolution of uncertain tax positions from what is currently estimated could have a material impact on our results of operations and financial condition.

The calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations in a variety of jurisdictions. We are also subject to ongoing tax examinations in numerous jurisdictions due to the extensive geographical scope of our operations. As a result, we have received, and may in the future receive, proposed tax adjustments and tax assessments in multiple jurisdictions. We regularly assess the likelihood of the outcomes resulting from these ongoing tax examinations as part of our continuing assessment of uncertain tax positions to determine our provision for income taxes. The specific timing of when the resolution of each tax position will be reached is uncertain. As of December 31, 2020, we do not believe that there are any positions for which it is reasonably possible that the total amount of unrecognized tax benefits will significantly increase or decrease within the next 12 months.

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


	2020		2019		2018
Balance at January 1	$	127	$	108	$	125
Additions related to current year	3		42		2
Additions related to prior years positions	8		17		3
Reductions related to prior years positions	(10)		(36)		(13)
Settlements with taxing authorities(1)	(8)		(1)		(6)
Reductions related to lapse of statute of limitations	(7)		(3)		(3)
Currency	2		—		—

Balance at December 31	$	115	$	127	$	108

_____________

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

Included in the balances at December 31, 2020, 2019 and 2018 are $8, $3 and $8, respectively, of tax positions that are highly certain of realizability but for which there is uncertainty about the timing or that they may be reduced through an indirect benefit from other taxing jurisdictions. Because of the impact of deferred tax accounting, other than for the possible incurrence of interest and penalties, the disallowance of these positions would not affect the annual effective tax rate.

Within income tax expense, we recognize interest and penalties accrued on unrecognized tax benefits, as well as interest received from favorable settlements. We had $4, $2 and $2 accrued for the payment of interest and penalties associated with unrecognized tax benefits at December 31, 2020, 2019 and 2018, respectively.

In the U.S., we are no longer subject to U.S. federal income tax examinations for years before 2015. With respect to our major foreign jurisdictions, we are no longer subject to tax examinations by tax authorities for years before 2011.

Deferred Income Taxes

At December 31, 2020 we have not provided deferred taxes on our undistributed pre-1987 E&P of approximately $360, as such undistributed earnings have been determined to be indefinitely reinvested and we currently do not plan to initiate any action that would precipitate a deferred tax impact. The increase from the amount at December 31, 2019 of $350 is due to foreign currency translation adjustments. Additionally, we have also not provided deferred taxes on the outside basis differences in our investments in foreign subsidiaries that are unrelated to undistributed earnings. These basis differences are also indefinitely reinvested. A determination of the unrecognized deferred taxes related to these components is not practicable.

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


	December 31,
	2020		2019(2)
Deferred Tax Assets
Research and development	$	150	$	143
Post-retirement medical benefits	94		98

Net operating losses	377		389
Operating reserves, accruals and deferrals	124		115
Tax credit carryforwards	249		231
Deferred and share-based compensation	13		26
Pension	211		298
Depreciation	35		16
Operating lease liabilities	82		84
Other	44		63
Subtotal	1,379		1,463
Valuation allowance	(396)		(399)
Total	$	983	$	1,064

Deferred Tax Liabilities
Finance lease and installment sales	$	247	$	240

Intangibles and goodwill	140		128
Unremitted earnings of foreign subsidiaries	31		39
Operating lease ROU assets	76		78
Other	16		18
Total	$	510	$	503

Total Deferred Taxes, Net	$	473	$	561

Reconciliation to the Consolidated Balance Sheets
Deferred tax assets	$	508	$	598
Deferred tax liabilities(1)	(35)		(37)
Total Deferred Taxes, Net	$	473	$	561

_____________

(1)Represents the deferred tax liabilities recorded in Other long-term liabilities - refer to Note 15 - Supplementary Financial Information.

(2)The deferred tax assets and liabilities disclosure at December 31, 2019 has been adjusted to primarily reflect the tax effect of the gross deferred tax Operating Lease (ROU) Assets and the tax effect of the related gross deferred tax Operating lease liabilities recognized in accordance with ASC 842. There was no impact on Total Deferred Taxes, Net from this adjustment.

We record the estimated future tax effects of temporary differences between the tax bases of assets and liabilities and the amounts reported, as well as net operating loss and tax credit carryforwards. Deferred tax assets are assessed for realizability and, where applicable, a valuation allowance is recorded to reduce the total deferred tax asset to an amount that will, more-likely-than-not, be realized in the future. We apply judgment in assessing the realizability of these deferred tax assets and the need for any valuation allowances. In determining the amount of deferred tax assets that are more-likely-than-not to be realized, we considered historical profitability, projected future taxable income, the expected timing of the reversals of existing temporary differences and tax planning strategies. The deferred tax assets requiring significant judgment are U.S. tax credit carryforwards with a limited life.

The net change in the total valuation allowance for the years ended December 31, 2020, 2019 and 2018 was a decrease of $3, an increase of $2 and a decrease of $38, respectively. The valuation allowance relates primarily to certain net operating loss carryforwards, tax credit carryforwards and deductible temporary differences for which we have concluded it is more-likely-than-not that these items will not be realized in the ordinary course of operations.

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

At December 31, 2020, we had tax credit carryforwards of $249 available to offset future income taxes, of which $2 are available to carryforward indefinitely while the remaining $247 will expire 2021 through 2041 if not utilized. We also had net operating loss carryforwards for income tax purposes of $600 that will expire 2021 through 2041, if not utilized, and $1.7 billion available to offset future taxable income indefinitely.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Contingencies and Litigation

12 Months Ended

Dec. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Contingencies and Litigation

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

Additionally, guarantees, indemnifications and claims arise during the ordinary course of business from relationships with suppliers, customers and nonconsolidated affiliates, as well as through divestitures and sales of businesses, when the Company undertakes an obligation to guarantee the performance of others if specified triggering events occur. Nonperformance under a contract could trigger an obligation of the Company. These potential claims include actions based upon alleged exposures to products, real estate, intellectual property such as patents, environmental matters, and other indemnifications. The ultimate effect on future financial results is not subject to reasonable estimation because considerable uncertainty exists as to the final outcome of these claims. However, while the ultimate liabilities resulting from such claims may be significant to results of operations in the period recognized, management does not anticipate they will have a material adverse effect on the Company's consolidated financial position or liquidity. As of December 31, 2020, we have accrued our estimate of liability incurred under our indemnification arrangements and guarantees.

Brazil Contingencies

Our Brazilian operations have received or been the subject of numerous governmental assessments related to indirect and other taxes. These 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:


	December 31, 2020		December 31, 2019
Tax contingency - unreserved	$	355	$	442
Escrow cash deposits	39		51
Surety bonds	112		135
Letters of credit	78		91
Liens on Brazilian assets	—		—

The decrease in the unreserved portion of the tax contingency, inclusive of any related interest, was primarily related to closed cases. 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 December 31, 2020. We routinely assess all these matters as to probability of ultimately incurring a liability against our Brazilian operations and record our best estimate of the ultimate loss in situations where we assess the likelihood of an ultimate loss as probable.

Litigation Against the Company

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 included 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 added as defendants Carl C. Icahn, Icahn Capital LP, and High River Limited Partnership (the “Icahn defendants”) and asserted 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 sought 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 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. On December 14, 2020, following oral argument, the Court issued a decision and order denying plaintiff’s cross-motion and granting defendants’ motions, dismissing the action in its entirety as to all defendants. Dismissal as to the Icahn defendants was conditioned on the filing of an affidavit, which the Icahn defendants filed on December 16, 2020, indicating whether defendant Icahn gained a profit or incurred a loss on purchases of HP stock during the relevant time period.

On January 13, 2021, plaintiff filed a notice of appeal of the December 14, 2020 dismissal order to the Appellate Division, First Department.

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 alleged 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 alleged that Icahn controlled and dominated Xerox Holdings and therefore owed 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 had risen in market value by approximately $128 since disclosure of the offer. The complaint included 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 sought 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 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. On December 14, 2020, following oral argument, the Court issued a decision and order granting defendants’ motions and dismissing the action in its entirety as to all defendants. Dismissal as to the Icahn defendants was conditioned on the filing of an affidavit, which the Icahn defendants filed on December 16, 2020, indicating whether defendant Icahn gained a profit or incurred a loss on purchases of HP stock during the relevant time period.

On December 23, 2020, plaintiff filed a motion seeking discovery related to the Icahn defendants’ losses resulting from their investment in HP. The motion was fully briefed on January 7, 2021. On January 15, 2021, the Court issued a decision and order denying the motion.

Also on January 15, 2021, plaintiff filed a notice of appeal of the December 14, 2020 dismissal order to the Appellate Division, First Department. On January 20, 2021, plaintiff filed a notice of appeal of the January 15, 2021 order denying its motion for discovery to the Appellate Division, First Department.

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, Indemnifications and Warranty Liabilities

Indemnifications Provided as Part of Contracts and Agreements

Acquisitions/Divestitures:

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

Other Agreements:

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

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

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

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

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

Patent Indemnifications

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

Indemnification of Officers and Directors

The corporate by-laws of Xerox Holdings Corporation and Xerox Corporation require that, except to the extent expressly prohibited by law, we must indemnify Xerox Holdings Corporation's and Xerox Corporation's officers and directors, respectively, against judgments, fines, penalties and amounts paid in settlement, including legal fees and

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

Product Warranty Liabilities

In connection with our normal sales of equipment, including those under sales-type leases, we generally do not issue product warranties. Our arrangements typically involve a separate full service maintenance agreement with the customer. The agreements generally extend over a period equivalent to the lease term or the expected useful life of the equipment under a cash sale. The service agreements involve the payment of fees in return for our performance of repairs and maintenance. As a consequence, we do not have any significant product warranty obligations, including any obligations under customer satisfaction programs. In a few circumstances, particularly in certain cash sales, we may issue a limited product warranty if negotiated by the customer. We also issue warranties for certain of our entry level products, where full service maintenance agreements are not available. In these instances, we record warranty obligations at the time of the sale. Aggregate product warranty liability expenses for the three years ended December 31, 2020, 2019 and 2018 were $8, $12 and $14, respectively. Total product warranty liabilities as of December 31, 2020 and 2019 were $6 and $7, respectively.

Guarantees

We have issued or provided approximately $303 of guarantees as of December 31, 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 tax and labor contingencies (see 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.

Preferred Stock	12 Months Ended
Preferred Stock	Dec. 31, 2020
Equity [Abstract]
Preferred Stock	Preferred Stock Series A Convertible Perpetual Voting Preferred Stock As of December 31, 2020, Xerox Holdings Corporation had one class of preferred stock outstanding. Xerox Holdings Corporation has issued 180,000 shares of Series A Preferred Stock that have an aggregate liquidation value of $180 and a carrying value of $214. The Series A Preferred Stock pays quarterly cash dividends at a rate of 8% per year ($14 per year), on a cumulative basis. Each share of Series A Preferred Stock is convertible at any time, at the option of the holder, into 37.4532 shares of common stock of Xerox Holdings Corporation for a total of 6,742 thousand shares (reflecting an initial conversion price of approximately $26.70 per share of common stock), subject to customary anti-dilution adjustments. If the closing price of Xerox Holdings Corporation common stock exceeds $39.00 or 146.1% of the initial conversion price of $26.70 per share of common stock for 20 out of 30 consecutive trading days, Xerox Holdings Corporation will have the right to cause any or all of the Series A Preferred Stock to be converted into shares of common stock at the then applicable conversion rate. The Series A Preferred Stock is also convertible, at the option of the holder, upon a change in control, at the applicable conversion rate plus an additional number of shares determined by reference to the price paid for our common stock upon such change in control. In addition, upon the occurrence of certain fundamental change events, including a change in control or the delisting of Xerox Holdings Corporation's common stock, the holder of the Series A Preferred Stock has the right to require Xerox Holdings Corporation to redeem any or all of the preferred stock in cash at a redemption price per share equal to the liquidation preference and any accrued and unpaid dividends up to, but not including, the redemption date. The Series A Preferred Stock is classified as temporary equity (i.e., apart from permanent equity) as a result of the contingent redemption feature. Series A Preferred Stock Voting Rights The Xerox Holdings Corporation Series A Preferred Stock will vote together with the Xerox Holdings Corporation common stock, as a single class, on all matters submitted to the shareholders of Xerox Holdings Corporation, but the Xerox Holdings Corporation Series A Voting Preferred Stock will only be entitled to one vote for every ten shares of Xerox Holdings Corporation common stock into which the Xerox Holdings Corporation Series A Preferred Stock is convertible (674,157 votes at December 31, 2020).

Shareholders' Equity

12 Months Ended

Dec. 31, 2020

Stockholders' Equity Note [Abstract]

Shareholders' Equity

Shareholders’ Equity

Xerox Holdings

Preferred Stock

Xerox Holdings Corporation is authorized to issue approximately 22 million shares of cumulative preferred stock, $1.00 par value per share. Refer to Note 22 - Preferred Stock for additional information.

Common Stock

Xerox Holdings Corporation is authorized to issue 437.5 million shares of common stock, $1.00 par value per share. At December 31, 2020, 26 million shares were reserved for issuance under our incentive compensation plans and 7 million shares were reserved for conversion of the Series A Convertible Perpetual Preferred Voting Stock.

Treasury Stock

Xerox Holdings accounts for the repurchased common stock under the cost method and includes such treasury stock as a component of our common shareholders' equity. Retirement of treasury stock is recorded as a reduction of Common stock and Additional paid-in capital at the time such retirement is approved by our Board of Directors.

The following provides cumulative information relating to Xerox Holdings' share repurchase program from its inception through December 31, 2020 (shares in thousands):


Authorized share repurchase program	$	1,000
Share repurchase cost	$	600
Share repurchase fees	$	—
Number of shares repurchased	24,691

Of the $1.0 billion of share repurchase granted in 2019 by Xerox Holdings Corporation's Board of Directors, approximately $400 of that authority remained available at December 31, 2020. In January 2021, Xerox Holdings Corporation's Board of Directors authorized an additional $100 of share repurchase authority increasing the remaining authorization to $500.

The following table reflects the changes in Common and Treasury stock shares (shares in thousands). The Treasury stock repurchases in the table below include the repurchases under both the prior Xerox Corporation authorized share repurchase program and the current Xerox Holdings Corporation authorized share repurchase program.


	Common Stock Shares	Treasury Stock Shares
Balance at December 31, 2017	254,613	—
Stock based compensation plans, net	1,103	—

Acquisition of Treasury stock	—	26,093
Cancellation of Treasury stock	(24,026)	(24,026)

Balance at December 31, 2018	231,690	2,067
Stock based compensation plans, net	1,310	—

Acquisition of Treasury stock	—	18,343
Cancellation of Treasury stock	(18,379)	(18,379)


Balance at December 31, 2019	214,621	2,031
Stock based compensation plans, net	1,390	—
Acquisition of Treasury stock	—	15,594
Cancellation of Treasury stock	(17,625)	(17,625)

Balance at December 31, 2020	198,386	—

Xerox

At December 31, 2020, Xerox Corporation has 1,000 authorized shares of common stock, $1.00 par value per share, of which 100 shares are issued and outstanding and held by Xerox Holdings Corporation.

Stock-Based Compensation

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

(shares in thousands)

We have a long-term incentive plan whereby eligible employees may be granted restricted stock units (RSUs), performance share units (PSUs) and stock options (SOs). We grant stock-based compensation awards in order to continue to attract and retain qualified employees and to better align employees' interests with those of our shareholders. Each of these awards is subject to settlement with newly issued shares of Xerox Holdings Corporation's common stock. At December 31, 2020 and 2019, 11 million and 13 million shares, respectively, were available for grant of awards.

Stock-based compensation expense was as follows:


	Year Ended December 31,
	2020		2019		2018
Stock-based compensation expense, pre-tax	$	42	$	50	$	57
Income tax benefit recognized in earnings	11		13		14

In 2019, the timing of our annual grant of awards was changed from April to January to more closely align the grant date with the underlying performance period related to PSUs. Stock options were not awarded under the 2020 or 2019 grants.

Restricted Stock Units

Compensation expense for RSUs is based upon the grant-date market price and is recognized on a straight-line basis over the vesting period, based on management's estimate of the number of shares expected to vest. Beginning with the 2018 grant, RSU's vest on a graded schedule as follows: 25% after one year of service, 25% after two years of service and 50% after three years of service from the date of grant. Prior to the 2018 grant, RSUs vested on a three-year cliff basis from the date of grant.

Performance Share Units

PSU awards granted in 2020 and 2019 were comprised of a performance-based component that included a Revenue and Free Cash Flow metric and a market-based component that included an Absolute Share Price metric. The metrics are weighted as follows: 25% Revenue, 25% Free Cash Flow and 50% Absolute Share Price. Accordingly, each PSU grant was one-half performance-based (Revenue and Free Cash Flow) and one-half market-based (Absolute Share Price). The measures are independent of each other and depending on the achievement of these metrics, a recipient of a PSU award is entitled to receive a number of shares equal to a percentage, ranging from 0% to 200% of the PSU award granted. The 2020 and 2019 PSUs retained the three-year cliff vesting from the date of grant.

In November 2020, the Xerox Holdings Corporation Board approved grants of RSUs to employees who had received grants of PSUs in 2019 and/or 2020 that included performance and market metrics that have been permanently adversely impacted by the COVID-19 pandemic. These grants of RSUs were made in December 2020. The grant-date value of the new RSUs for each recipient was approximately 50% of the grant-date value of the recipient’s 2020 and/or 2019 PSUs. These RSU grants are not intended to take the place of the Company’s 2021 regular annual equity incentive programs.

PSU awards granted by the Xerox Holdings Corporation in 2018 were comprised of a performance-based component that included Revenue Growth and Free Cash Flow metrics and a market-based component that included a Total Shareholder Return (TSR) metric. The metrics were equally weighted; accordingly, each PSU grant was two-thirds performance-based (Revenue Growth and Free Cash Flow) and one-third market-based (TSR). The measures are independent of each other and depending on the achievement of these metrics, a recipient of a PSU award is entitled to receive a number of shares equal to a percentage, ranging from 0% to 200% of the PSU award granted. The 2018 PSUs have a three-year cliff vesting from the date of grant.

In December 2018, the Xerox Holdings Corporation Board approved and modified the performance-based metrics and the market-based metric of the 2018 PSU grant to a one-year performance period (2018), and a two-year time-based requirement (2019 and 2020).

PSU awards granted in 2017 were exclusively performance based and included metrics for Revenue Growth, Earnings per Share and Cash Flow from Operations that were measured over a three-year performance period. The 2017 PSUs had a three-year cliff vesting from the date of grant.

Performance-Based Component: PSUs vest contingent upon meeting pre-determined cumulative performance metrics. The fair value of our PSUs is based upon the grant-date market price. Compensation expense is recognized on a straight-line basis over the vesting period, based on management's estimate of the number of shares expected to vest and based on meeting the performance metrics. If the cumulative three-year actual results exceed the stated targets, all plan participants have the potential to earn additional shares of common stock up to a maximum over-achievement of 100% of the original grant. If the stated targets are not met, any recognized compensation cost would be reversed.

Market-Based Component: The Absolute Share Price metric included as the market-based component of the 2020 and 2019 PSU grant is based on Xerox Holdings Corporation's average closing price for the last 20 trading days of the three-year performance period, inclusive of dividends during that period. Payout for this portion of the PSU will be determined based on total return targets. Since the Absolute Share Price metric of the PSU award represents a market condition, a Monte Carlo simulation was used to determine the grant-date fair value.

The TSR metric included as the market-based component of the 2018 PSU grant was based on the percentage change in Xerox Corporation stock price plus dividends paid over the three-year measurement period. Payout for this portion of the PSU was to be determined based on Xerox Corporation percentage change compared to the shareholder returns of the peer group of companies approved by the compensation committee of the Board (as disclosed in the 2018 annual proxy statement). Since the TSR metric of the PSU award represented a market condition, a Monte Carlo simulation was used to determine the grant-date fair value.

A summary of Xerox Holdings key valuation input assumptions used in the Monte Carlo simulation relative to the 2020, 2019 and 2018 PSU awards granted were as follows:


	2020 Award			2019 Award			2018 Award
Term	3 years			3 years			3 years
Risk-free interest rate(1)	1.60		%	2.51		%	2.39		%
Dividend yield(2)	2.80		%	3.97		%	3.24		%
Volatility(3)	29.49		%	32.95		%	29.12		%
Weighted average fair value(4)	$	41.28		$	16.27		$	32.01

____________

(1)The risk-free interest rate was based on the zero-coupon U.S. Treasury yield curve on the valuation date, with a maturity matched to the performance period.

(2)The dividend yield was calculated as the expected quarterly dividend divided by our three-month average stock price as of the valuation date, annualized and continuously compounded.

(3)Volatility is derived from historical stock prices as well as implied volatility when appropriate and available.

(4)The weighted-average of fair values used to record compensation expense as determined by the Monte Carlo simulation.

Our Absolute Share Price metric is compared against total return targets to determine the payout as follows:


Payout as a Percent of Target	2020 Total Return Targets(1)	2019 Total Return Targets(1)
200%	$45.00 and above	$40.00 and above
100%	$40.00	$35.00
50%	$37.00	$30.00
0%	Below $37.00	Below $30.00

Our 2018 TSR metric compared to the peer group TSR will determine the payout as follows:


Payout as a Percent of Target						Percentile(1)
200%						80th and above
100%						50th
35%						25th
0%						Below 25th

____________

(1)For performance between the levels described above, the degree of vesting is interpolated on a linear basis.

Compensation expense for the market-based component of the PSU awards is recognized on a straight-line basis over the vesting period based on the fair value determined by the Monte Carlo simulation and, except in cases of employee forfeiture, cannot be reversed regardless of performance. There was no impact to compensation expense as a result of the Xerox Corporation Board’s approval to modify the 2018 TSR metric to a one-year performance period (2018) and a two-year time-based requirement (2019 and 2020).

Stock Options

The Xerox Corporation Board approved the granting of SOs as part of the 2018 plan design. Compensation expense associated with SOs is based upon the grant date fair value determined by utilizing the Black-Scholes (BS) option-pricing model and is recognized on a straight-line basis over the vesting period, based on management's estimate of the number of SOs expected to vest. The 2018 SOs have a contractual term of 10 years from the date of grant and vest as follows: 25% after one year of service, 25% after two years of service, and 50% after three years of service from the date of grant.

Xerox Holdings weighted average assumptions used in the BS option-pricing model relative to SO awards were as follows:


	2018 Award
Expected term(1)	6.13 years
Expected volatility(2)	27.25	%
Expected dividend yield(3)	3.25	%
Risk-free interest rate(4)	2.63	%
Weighted average fair value(5)	$5.71

____________

(1)Since these SO grants were effectively part of a new program, the expected term was calculated using the "Simplified Method” under the SEC guidance based on the SOs vesting schedule and contractual term. We did not have sufficient historical exercise data to provide a reasonable basis to estimate an expected term.

(2)The expected volatility was calculated based on a combination of term-matched historical volatility and implied volatility from traded options.

(3)The dividend yield was calculated as the expected quarterly dividend divided by our three-month average stock price as of the grant date.

(4)The risk-free interest rate was based on the zero-coupon U.S. Treasury yield curve with a maturity matched to the expected term of the SOs.

(5)The weighted average of fair values used to record compensation expense as determined by the BS option-pricing model.

Note: Management’s estimate of the number of shares expected to vest at the time of grant reflects an estimate for forfeitures based on our historical forfeiture rate to date. Should actual forfeitures differ from management’s estimate, the activity will be reflected in a subsequent period. In addition, RSUs, PSUs and SOs awarded to employees who are retirement-eligible at the date of grant, become retirement-eligible during the vesting period, or are terminated not-for-cause (e.g. as part of a restructuring initiative), vest based on service provided from the date of grant to the date of separation.

Summary of Stock-based Compensation Activity


	2020			2019			2018
	Shares	Weighted Average Grant Date Fair Value(1)		Shares	Weighted Average Grant Date Fair Value(1)		Shares	Weighted Average Grant Date Fair Value(1)
Restricted Stock Units (2)
Outstanding at January 1	2,845	$	26.87	3,559	$	29.51	2,856	$	30.65
Granted	2,028	27.85		1,366	23.22		1,595	27.82
Vested	(1,473)	28.85		(1,666)	29.28		(214)	30.39
Forfeited	(213)	28.39		(414)	27.85		(678)	30.04


Outstanding at December 31	3,187	26.48		2,845	26.87		3,559	29.51
Performance Shares
Outstanding at January 1	2,830	$	24.99	2,462	$	29.83	3,117	$	31.54
Granted	901	37.59		1,433	19.46		1,060	27.36
Vested	(993)	31.94		(633)	29.56		(853)	32.59
Forfeited/Expired	(313)	26.22		(432)	27.50		(862)	30.26


Outstanding at December 31	2,425	26.67		2,830	24.99		2,462	29.83
Stock Options
Outstanding at January 1	861	$	27.83	1,022	$	27.84	—	$	—
Granted	—	—		—	—		1,414	27.88
Forfeited/Expired	(60)	27.98		(92)	27.92		(392)	27.98
Exercised	(2)	27.98		(69)	27.98		—	—

Outstanding at December 31	799	27.81		861	27.83		1,022	27.84
Exercisable at December 31	470	27.84		233	27.83		39	27.98

____________

(1)Weighted average exercise price for stock options.

(2)Includes a 2018 Restricted Stock Award (RSA) grant of 351 shares with a corresponding grant date fair value of $28.51, which vested in 2019.

Unrecognized compensation cost related to non-vested stock-based awards at December 31, 2020 was as follows:


Awards	Unrecognized Compensation		Remaining Weighted-Average Vesting Period (Years)
Restricted Stock Units	$	51	1.0
Performance Shares	13		1.1

Total	$	64

The aggregate intrinsic value of outstanding stock-based awards was as follows:


Awards	December 31, 2020
Restricted Stock Units	$	74
Performance Shares	56
Stock Options(1)	—

____________

(1)Strike price greater than Xerox Holdings Corporation Stock price at December 31, 2020, therefore, intrinsic value considered to be $0.

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


	December 31, 2020						December 31, 2019						December 31, 2018
Awards	Total Intrinsic Value		Cash Received		Tax Benefit		Total Intrinsic Value(1)		Cash Received		Tax Benefit		Total Intrinsic Value		Cash Received		Tax Benefit
Restricted Stock Units	$	33	$	—	$	5	$	55	$	—	$	11	$	6	$	—	$	2
Performance Share Units	18		—		4		23		—		6		21		—		4
Stock Options	—		—		—		1		2		—		—		—		—

____________

(1)RSUs include a RSA grant of 351 shares, which vested in 2019.

Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2020

Other Comprehensive Income [Abstract]

Other Comprehensive Income (Loss)

In 2019, as a result of the sale of our investment in Fuji Xerox, we reclassified out of Accumulated other comprehensive loss and into earnings, $165 of accumulated translation adjustments and defined benefit plan losses related to Fuji Xerox. The reclassified amounts are included in the gain recognized on the Sales. Refer to Note 6 - Divestitures for additional information regarding these Sales and the associated gain recognized.

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


	Year Ended December 31,
	2020				2019				2018
	Pre-tax		Net of Tax		Pre-tax		Net of Tax		Pre-tax		Net of Tax
Translation Adjustments Gains (Losses)
Aggregate adjustment in period	$	238	$	241	$	53	$	45	$	(251)	$	(242)
Divestiture - reclassification	—		—		17		17		—		—
Net Translation Adjustments Gains (Losses)	238		241		70		62		(251)		(242)

Unrealized Gains (Losses)
Changes in fair value of cash flow hedges gains	4		3		2		1		9		8
Changes in cash flow hedges reclassed to earnings(1)	1		1		(9)		(7)		14		10
Other losses	—		—		—		—		(2)		(2)
Net Unrealized Gains (Losses)	5		4		(7)		(6)		21		16

Defined Benefit Plans Gains (Losses)
Net actuarial/prior service gains (losses)	117		86		(275)		(202)		273		198
Prior service amortization/curtailment(2)	(80)		(60)		(81)		(61)		(26)		(20)
Actuarial loss amortization/settlement(2)	138		104		156		118		252		190
Fuji Xerox changes in defined benefit plans, net(3)	—		—		8		8		(25)		(25)
Other (losses) gains(4)	(63)		(61)		(21)		(21)		66		66
Divestiture - reclassification	—		—		148		148		—		—
Changes in Defined Benefit Plans Gains (Losses)	112		69		(65)		(10)		540		409



Other Comprehensive Income (Loss) Attributable to Xerox Holdings/Xerox	$	355	$	314	$	(2)	$	46	$	310	$	183

_____________

(1)Reclassified to Cost of sales - refer to Note 17 - Financial Instruments for additional information regarding our cash flow hedges.

(2)Reclassified to Total Net Periodic Benefit Cost - refer to Note 19 - 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:


	December 31,
	2020		2019		2018
Cumulative translation adjustments	$	(1,720)	$	(1,961)	$	(2,023)
Other unrealized gains (losses), net	2		(2)		4
Benefit plans net actuarial losses and prior service credits(1)(2)	(1,614)		(1,683)		(1,546)
Total Accumulated Other Comprehensive Loss Attributable to Xerox Holdings/Xerox	$	(3,332)	$	(3,646)	$	(3,565)

_____________

(1)Amounts prior to 2019 include our share of Fuji Xerox balances.

(2)The change from December 31, 2018 includes $(127) related to the adoption of ASU 2018-02 and the reclassification of stranded tax effects resulting from the Tax Act - Refer to Note 1 - Basis of Presentation and Summary of Significant Accounting Policies for additional information.

We utilize the aggregate portfolio approach for releasing disproportionate income tax effects from AOCL.

Earnings per Share

12 Months Ended

Dec. 31, 2020

Earnings Per Share [Abstract]

Earnings per Share

The following table sets forth the computation of basic and diluted earnings per share of Xerox Holdings Corporation's common stock (shares in thousands):


	Year Ended December 31,
	2020		2019		2018
Basic Earnings per Share:
Net Income from continuing operations attributable to Xerox Holdings	$	192	$	648	$	306
Accrued dividends on preferred stock	(14)		(14)		(14)
Adjusted Net income from continuing operations available to common shareholders	178		634		292
Income from discontinued operations attributable to Xerox Holdings, net of tax	—		705		55
Adjusted Net income available to common shareholders	$	178	$	1,339	$	347
Weighted average common shares outstanding	208,983		221,969		248,707
Basic Earnings per Share:
Continuing operations	$	0.85	$	2.86	$	1.17
Discontinued operations	—		3.17		0.23
Basic Earnings per Share	$	0.85	$	6.03	$	1.40

Diluted Earnings per Share:
Net Income from continuing operations attributable to Xerox Holdings	$	192	$	648	$	306
Accrued dividends on preferred stock	(14)		—		(14)

Adjusted Net income from continuing operations available to common shareholders	178		648		292
Income from discontinued operations attributable to Xerox Holdings, net of tax	—		705		55
Adjusted Net income available to common shareholders	$	178	$	1,353	$	347
Weighted average common shares outstanding	208,983		221,969		248,707
Common shares issuable with respect to:
Stock options	15		55		—
Restricted stock and performance shares	2,439		4,403		2,953
Convertible preferred stock	—		6,742		—

Adjusted Weighted average common shares outstanding	211,437		233,169		251,660

Diluted Earnings per Share:
Continuing operations	$	0.84	$	2.78	$	1.16
Discontinued operations	—		3.02		0.22
Diluted Earnings per Share	$	0.84	$	5.80	$	1.38

The following securities were not included in the computation of diluted earnings per share as they were either contingently issuable shares or shares that if included would have been anti-dilutive (shares in thousands):
Stock options	784		805		1,022
Restricted stock and performance shares	3,173		1,272		3,068
Convertible preferred stock	6,742		—		6,742

Total Anti-Dilutive Securities	10,699		2,077		10,832

Dividends per Common Share	$	1.00	$	1.00	$	1.00

Schedule II Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2020

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

Schedule II Valuation and Qualifying Accounts

Xerox Holdings Corporation

Schedule II Valuation and Qualifying Accounts

Receivables - Allowance for doubtful accounts:


(in millions)	Balance at beginning of period		Additions charged to bad debt provision (1)		Amounts charged to other income statement accounts (1)		Deductions and other, net of recoveries (2)		Balance at end of period
Year Ended December 31, 2020
Accounts Receivable	$	55	$	35	$	—	$	(21)	$	69
Finance Receivables	89		81		—		(37)		133
	$	144	$	116	$	—	$	(58)	$	202

Year Ended December 31, 2019
Accounts Receivable	$	56	$	18	$	—	$	(19)	$	55
Finance Receivables	92		28		3		(34)		89
	$	148	$	46	$	3	$	(53)	$	144

Year Ended December 31, 2018
Accounts Receivable	$	59	$	12	$	2	$	(17)	$	56
Finance Receivables	108		24		2		(42)		92
	$	167	$	36	$	4	$	(59)	$	148

_____________

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

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

Deferred Tax Asset Valuation Allowances:


(in millions)	Balance at beginning of period		Additions charged to income tax expense	Amounts credited to other accounts (1)	Balance at end of period
Year Ended December 31, 2020	$	399	25	(28)	$	396

Year Ended December 31, 2019	$	397	16	(14)	$	399

Year Ended December 31, 2018	$	435	3	(41)	$	397

_____________

(1)Reflects other decreases to our valuation allowance, including the effects of currency. These did not affect Income tax expense in total as there was a corresponding adjustment to Deferred tax assets or Other comprehensive income.

Xerox Corporation

Schedule II Valuation and Qualifying Accounts

Receivables - Allowance for doubtful accounts:


(in millions)	Balance at beginning of period		Additions charged to bad debt provision (1)		Amounts charged to other income statement accounts (1)		Deductions and other, net of recoveries (2)		Balance at end of period
Year Ended December 31, 2020
Accounts Receivable	$	55	$	35	$	—	$	(21)	$	69
Finance Receivables	89		81		—		(37)		133
	$	144	$	116	$	—	$	(58)	$	202

Year Ended December 31, 2019
Accounts Receivable	$	56	$	18	$	—	$	(19)	$	55
Finance Receivables	92		28		3		(34)		89
	$	148	$	46	$	3	$	(53)	$	144

Year Ended December 31, 2018
Accounts Receivable	$	59	$	12	$	2	$	(17)	$	56
Finance Receivables	108		24		2		(42)		92
	$	167	$	36	$	4	$	(59)	$	148

_____________

Deferred Tax Asset Valuation Allowances:


(in millions)	Balance at beginning of period		Additions charged to income tax expense	Amounts credited to other accounts (1)	Balance at end of period
Year Ended December 31, 2020	$	399	25	(28)	$	396

Year Ended December 31, 2019	$	397	16	(14)	$	399

Year Ended December 31, 2018	$	435	3	(41)	$	397

_____________

(1)Reflects other decreases increases to our valuation allowance, including the effects of currency. These did not affect Income tax expense in total as there was a corresponding adjustment to Deferred tax assets or Other comprehensive income.

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2020
Accounting Policies [Abstract]
Basis of Consolidation	Basis of Consolidation All significant intercompany accounts and transactions have been eliminated. Investments in business entities in which we do not have control, but we have the ability to exercise significant influence over operating and financial policies (generally 20% to 50% ownership) are accounted for using the equity method of accounting. Operating results of acquired businesses are included in the Consolidated Statements of Income from the date of acquisition. We consolidate variable interest entities if we are deemed to be the primary beneficiary of the entity. Operating results for variable interest entities in which we are determined to be the primary beneficiary are included in the Consolidated Statements of Income from the date such determination is made. For convenience and ease of reference, we refer to the financial statement caption “Income before Income Taxes and Equity Income” as “pre-tax income” throughout the Notes to the Consolidated Financial Statements.
Discontinued Operations	Discontinued Operations 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 of FX and XIP 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. The accompanying Notes to the Consolidated Financial Statements have all been revised to reflect the effect of the Sales and all prior year balances have been revised accordingly to reflect continuing operations only. The historical statements of Comprehensive Income and Shareholders' Equity have not been revised to reflect the Sales and instead reflect the Sales as an adjustment to the balances at December 31, 2019. Refer to Note 6 - Divestitures for additional information regarding discontinued operations.
Use of Estimates	Use of Estimates The preparation of our Consolidated Financial Statements requires that we make estimates and assumptions that affect the reported amounts of assets and liabilities, as well as the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Future events and their effects cannot be predicted with certainty; accordingly, our accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of our Consolidated Financial Statements will change as new events occur, as more experience is acquired, as additional information is obtained and as our operating environment changes. Our estimates are based on management's best available information including current events, historical experience, actions that the company may undertake in the future and on various other assumptions that are believed to be reasonable under the circumstances. As a result, actual results may be different from these estimates.
Changes in Estimates - Methodology	In the ordinary course of accounting for the items discussed above, we make changes in estimates as appropriate and as we become aware of new or revised circumstances surrounding those estimates. Such changes and refinements in estimation methodologies are reflected in reported results of operations in the period in which the changes are made and, if material, their effects are disclosed in the Notes to the Consolidated Financial Statements and in Management's Discussion and Analysis of Financial Condition and Results of Operations. As of December 31, 2020, the impact of the COVID-19 pandemic 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.
New Accounting Standards and Accounting Changes	New Accounting Standards and Accounting Changes Except for the Accounting Standard Updates (ASUs) discussed below, the new ASUs issued by the FASB during the last two years did not have any significant impact on the Company. 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 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 and subsequent amendments on reference rate reform, 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, cash flows or disclosures. Accounting Standard Updates Recently Adopted: 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), discussed below, 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. Through September 30, 2020 we provided rent deferrals as a Lessor that were primarily offered to customers with sales type lease receivables. This special program was discontinued in the fourth quarter. 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. Through September 30, 2020, we approved payment deferrals of up to 3 months for approximately $33 or approximately 1% of our total finance receivable portfolio. 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 2020 were material, individually or in the aggregate. On January 1, 2019, we adopted ASU 2016-02, Leases (ASC Topic 842). This update, as well as additional amendments and targeted improvements issued in 2018 and early 2019, supersedes existing lease accounting guidance found under ASC 840, Leases (ASC 840) and requires the recognition of right-to-use assets and lease obligations by lessees for those leases originally classified as operating leases under prior lease guidance. Effective with the adoption, leases are classified as either finance or operating, with classification affecting the pattern of expense recognition. Short-term leases with a term of 12 months or less are not required to be recognized. The update also requires qualitative and quantitative disclosure of key information regarding the amount, timing and uncertainty of cash flows arising from leasing arrangements to increase transparency and comparability among companies. The accounting for lessors does not fundamentally change with this update except for changes to conform and align guidance to the lessee guidance, as well as to the revenue recognition guidance in ASU 2014-09. Some of these conforming changes, such as those related to the definition of lease term and minimum lease payments, resulted in certain lease arrangements, that would have been previously accounted for as operating leases, to be classified and accounted for as sales-type leases with a corresponding up-front recognition of equipment sales revenue. Upon adoption, we applied the transition option, whereby prior comparative periods are not retrospectively presented in the Consolidated Financial Statements. We also elected the package of practical expedients not to reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs and the lessee practical expedient to combine lease and non-lease components for certain asset classes (real estate lease arrangements for offices and warehouses). Additionally, we made a policy election to not recognize right-of-use assets and lease liabilities for short-term leases for all asset classes. We elected the package of practical expedients from both the Lessee and Lessor prospective, to the extent applicable. Lessee accounting - the adoption of this update resulted in an increase to assets and related liabilities of approximately $385 (approximately $440 undiscounted) primarily related to leases of facilities. Refer to Note 11 - Lessee for additional information related to our lessee accounting. Lessor accounting - the adoption of this update resulted in an increase to equipment sales by approximately $30 in 2019 as compared to 2018. Refer to Note 4 - Lessor for additional information related to our lessor accounting. 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 7 - Accounts Receivable, Net and Note 8 - Finance Receivables, 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. Income Taxes In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. We adopted ASU 2018-02 effective for our fiscal year beginning January 1, 2019 and upon adoption reclassified $127 from Accumulated other comprehensive loss (AOCL) to Retained earnings related to the stranded tax effects resulting from the Tax Cuts and Jobs Act (Tax Act) enacted in December 2017. The reclassification was primarily related to the stranded tax effects associated with amounts in AOCL from our retirement-related benefit plans. Accordingly, the adoption of this update eliminated the stranded tax effects resulting from the Tax Act. However, because the update only relates to the reclassification of the income tax effects of the Tax Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in Income from continuing operations is not affected. Revenue Recognition On January 1, 2018, we adopted ASU 2014-09, Revenue from Contracts with Customers (ASC Topic 606), which superseded nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASC Topic 606 is to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASC Topic 606 defines a five-step process to recognize revenue and requires more judgment and estimates within the revenue recognition process than required under previous U.S. GAAP, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. We adopted this standard using the modified retrospective method of adoption and therefore we did not revise periods prior to adoption (e.g. 2017). Under ASC Topic 606, based on the nature of our contracts and consistent with prior practice, we recognize revenue upon invoicing the customer for the large majority of our revenue. Additionally, the unit of accounting, that is, the identification of performance obligations, is consistent with prior revenue recognition practice. Accordingly, the adoption of this standard did not have a material impact on the large majority of our revenues. A significant portion of our Equipment sales are either recorded as sales-type leases or through direct sales to distributors and resellers and these revenue streams are not impacted by the adoption of ASC Topic 606. The only change of significance identified in our adoption involves a change in the classification of certain revenues that were previously reported in Services revenues. These revenues relate to certain analyst services performed in connection with the installation of equipment that are being considered part of the equipment sale performance obligation effective beginning January 1, 2018. Accordingly, these revenues are now reported as part of Sales. Another change identified upon adoption was with respect to deferred contract costs, which include incremental costs of obtaining a contract and costs to fulfill a contract. Deferred contract costs had been minimal under our prior practices as most costs to obtain a contract and fulfill a contract were expensed as incurred. However, as a result of the contract cost guidance included in ASC Topic 606 and ASC Topic 340-40 "Contracts with Customers", upon adoption on January 1, 2018, we recorded a transition asset of $153, and a net of tax increase of $117 to Retained earnings, related to the incremental cost to obtain contracts. Substantially all of this adjustment is related to the deferral of sales commissions paid to sales people and agents in connection with the placement of equipment with post sale service arrangements. The impact to the Statement of Income from this change is not material. Other Updates The FASB also issued the following Accounting Standards Updates, which have not had, and are not expected to have, a material impact on our financial condition, results of operations or cash flows upon adoption. Those updates are as follows: •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. •Compensation - Retirement Benefits - Defined Benefit Plans - General: ASU 2018-14, (Topic 715-20) Changes to the Disclosure Requirements for Defined Benefit Plans. We elected to early adopt this update effective for our fiscal year ended December 31, 2019. Refer to Note 19 - Employee Benefit Plans for changes in the disclosures for our Defined Benefit Plans. •Fair Value Measurement: ASU 2018-13, (Topic 820) Disclosure Framework. This update was effective for our fiscal year beginning January 1, 2020.
Revenue Recognition	Revenue Recognition We generate revenue through the sale of equipment, supplies and maintenance and printing services. Revenue is measured based on consideration specified in a contract with a customer and is recognized when we satisfy a performance obligation by transferring control of a product to a customer or in the period the customer benefits from the service. With the exception of our sales-type lease arrangements, our invoices to the customer, which normally have short-term payment terms, are typically aligned to the transfer of goods or as services are rendered to our customers and therefore in most cases we recognize revenue based on our right to invoice customers. As a result of the application of this practical expedient for the substantial portion of our revenue, the disclosure of the value of unsatisfied performance obligations for our services is not required. Significant judgments primarily include the identification of performance obligations in our Document management services arrangements as well the pattern of delivery for those services. More specifically, revenue related to our products and services is generally recognized as follows: Equipment: Revenues from the sale of equipment directly to end customers, including those from sales-type leases (see below), are recognized when obligations under the terms of a contract with our customer are satisfied and control has been transferred to the customer. For equipment placements that require us to install the product at the customer location, revenue is normally recognized when the equipment has been delivered and installed at the customer location. Sales of customer installable products are recognized upon shipment or receipt by the customer according to the customer's shipping terms. Revenue from the equipment performance obligation also includes certain analyst training services performed in connection with the installation or delivery of the equipment. Maintenance services: We provide maintenance agreements on our equipment that include service and supplies for which the customer may pay a base minimum plus a price-per-page charge for usage. In arrangements that include minimums, those minimums are normally set below the customer’s estimated page volumes and are not considered substantive. These agreements are sold as part of a bundled lease arrangement or through distributors and resellers. We normally account for these maintenance agreements as a single performance obligation for printing services being delivered in a series with delivery being measured by usage as billed to the customer. Accordingly, revenue on these agreements are normally recognized as billed to the customer over the term of the agreements based on page volumes. A substantial portion of our products are sold with full service maintenance agreements, accordingly, other than the product warranty obligations associated with certain of our entry level products, we do not have any significant warranty obligations, including any obligations under customer satisfaction programs. Document management services: Revenues associated with our document management services are generally recognized as printing services are rendered, which is generally on the basis of the number of images produced. Revenues on unit-price contracts are recognized at the contractual selling prices as work is completed by the customer. We account for these arrangements as a single performance obligation for printing services being delivered in a series with delivery being measured by usage as billed to the customer. Our services contracts may also include the sale or lease of equipment and software. In these instances, we follow the policies noted for Equipment or Software Revenues and separately report the revenue associated with these performance obligations. Certain document management services arrangements may also include an embedded lease of equipment. In these instances, the revenues associated with the lease are recognized in accordance with the requirements for lease accounting. Sales to distributors and resellers: We utilize distributors and resellers to sell our equipment, supplies and maintenance services to end-user customers. We refer to our distributor and reseller network as our two-tier distribution model. Revenues on sales to distributors and resellers are generally recognized when products are shipped to such distributors and resellers. However, revenue is only recognized when the distributor or reseller has economic substance apart from the Company such that collectability is probable and we have no further obligations related to bringing about the resale, delivery or installation of the product that would impact transfer of control. Revenues associated with maintenance agreements sold through distributors and resellers to end customers are recognized in a consistent manner for maintenance services. Revenue that may be subject to a reversal of revenue due to contractual terms or uncertainties is not recorded as revenue until the contractual provisions lapse or the uncertainties are resolved. Distributors and resellers participate in various rebate, price-protection, cooperative marketing and other programs. We estimate the variable consideration associated with these programs and record those amounts as a reduction to revenue when the sales occur. Similarly, we account for our estimates of sales returns and other allowances when the sales occur based on our historical experience. In certain instances, we may provide lease financing to end-user customers who purchased equipment we sold to distributors or resellers. We are not obligated to provide financing and we compete with other third-party leasing companies with respect to the lease financing provided to these end-user customers. Software: Most of our equipment has both software and non-software components that function together to deliver the equipment's essential functionality and therefore they are accounted for together as part of Equipment sales revenues. Software accessories sold in connection with our Equipment sales, as well as free-standing software sales, are accounted for as separate performance obligations if determined to be material in relation to the overall arrangement. Revenue from software is not a significant component of our Total revenues. Supplies: Supplies revenue is recognized upon transfer of control to the customer, generally upon utilization or shipment to the customer in accordance with the sales contract terms. Financing: Finance income attributable to sales-type leases, direct financing leases and installment loans is recognized on the accrual basis using the effective interest method. Bundled Lease Arrangements: A significant portion of our direct sales of equipment to end customers are made through bundled lease arrangements that typically include equipment, maintenance and financing components for which the customer pays a single negotiated fixed minimum monthly payment for all elements over the contractual lease term. These arrangements also typically include an incremental, variable component for page volumes in excess of contractual page volume minimums, which are often expressed in terms of price-per-page. The fixed minimum monthly payments are multiplied by the number of months in the contract term to arrive at the total fixed minimum payments that the customer is obligated to make (fixed payments) over the lease term. In applying our lease accounting methodology, we only consider the fixed payments for purposes of allocating to the relative fair value elements of the contract. Revenues under bundled arrangements are allocated considering the relative standalone selling prices of the lease and non-lease deliverables included in the bundled arrangement. Lease deliverables include the equipment, financing, maintenance and other executory costs, while non-lease deliverables generally consist of the supplies and non-maintenance services. The allocation for the lease deliverables begins by allocating revenues to the maintenance and other executory costs plus a profit thereon. These elements are generally recognized over the term of the lease as service revenue. The remaining amounts are allocated to the equipment and financing elements, which are subjected to the accounting estimates noted below under “Leases”. Leases: The two primary lease accounting provisions we assess for the classification of transactions as sales-type or operating leases are: (1) a review of the lease term to determine if it is equal to or greater than 75% of the economic life of the equipment and (2) a review of the present value of the minimum lease payments to determine if they are equal to or greater than 90% of the fair market value of the equipment at the inception of the lease. Equipment placements included in arrangements meeting these conditions are accounted for as sales-type leases and revenue is recognized as noted above for Equipment. Equipment placements included in arrangements that do not meet these conditions are accounted for as operating leases and revenue is recognized over the term of the lease. We consider the economic life of most of our products to be five years, since this represents the most frequent contractual lease term for our principal products and only a small percentage of our leases are for original terms longer than five years. There is no significant after-market for our used equipment. We believe five years is representative of the period during which the equipment is expected to be economically usable, with normal service, for the purpose for which it is intended. Residual values are not significant. With respect to fair value, we perform an analysis of equipment fair value based on cash selling prices during the applicable period. The cash selling prices are compared to the range of values determined for our leases. The range of cash selling prices must be reasonably consistent with the lease selling prices in order for us to determine that such lease prices are indicative of fair value. Our lease pricing interest rates, which are used in determining customer payments in a bundled lease arrangement, are developed based upon a variety of factors including local prevailing rates in the marketplace and the customer’s credit history, industry and credit class. We reassess our pricing interest rates quarterly based on changes in the local prevailing rates in the marketplace. These interest rates have generally been adjusted if the rates vary by 25 basis points or more, cumulatively, from the rate last in effect. The pricing interest rates generally equal the implicit rates within the leases, as corroborated by our comparisons of cash to lease selling prices. Note: The above two revenue recognition policies apply to 2018 only and were updated as a result of our adoption of ASC Topic 842 effective January 1, 2019. Refer to Note 4 - Lessor for the updated policies. Other Revenue Recognition Policies Revenue-based Taxes: Revenue-based taxes assessed by governmental authorities that are both imposed on and concurrent with specific revenue-producing transactions, and that are collected by the Company from a customer, are excluded from revenue. The primary revenue-based taxes are sales tax and value-added tax (VAT). Shipping and Handling: Shipping and handling costs are accounted for as a fulfillment cost and are included in Cost of sales in the Consolidated Statements of Income. Refer to Note 2 - Revenue for additional information regarding revenue recognition policies with respect to contract assets and liabilities as well as contract costs.
Financing	Financing: Finance income attributable to sales-type leases, direct financing leases and installment loans is recognized on the accrual basis using the effective interest method.
Leases	Leases: The two primary lease accounting provisions we assess for the classification of transactions as sales-type or operating leases are: (1) a review of the lease term to determine if it is equal to or greater than 75% of the economic life of the equipment and (2) a review of the present value of the minimum lease payments to determine if they are equal to or greater than 90% of the fair market value of the equipment at the inception of the lease. Equipment placements included in arrangements meeting these conditions are accounted for as sales-type leases and revenue is recognized as noted above for Equipment. Equipment placements included in arrangements that do not meet these conditions are accounted for as operating leases and revenue is recognized over the term of the lease. We consider the economic life of most of our products to be five years, since this represents the most frequent contractual lease term for our principal products and only a small percentage of our leases are for original terms longer than five years. There is no significant after-market for our used equipment. We believe five years is representative of the period during which the equipment is expected to be economically usable, with normal service, for the purpose for which it is intended. Residual values are not significant. With respect to fair value, we perform an analysis of equipment fair value based on cash selling prices during the applicable period. The cash selling prices are compared to the range of values determined for our leases. The range of cash selling prices must be reasonably consistent with the lease selling prices in order for us to determine that such lease prices are indicative of fair value. Our lease pricing interest rates, which are used in determining customer payments in a bundled lease arrangement, are developed based upon a variety of factors including local prevailing rates in the marketplace and the customer’s credit history, industry and credit class. We reassess our pricing interest rates quarterly based on changes in the local prevailing rates in the marketplace. These interest rates have generally been adjusted if the rates vary by 25 basis points or more, cumulatively, from the rate last in effect. The pricing interest rates generally equal the implicit rates within the leases, as corroborated by our comparisons of cash to lease selling prices. Note: The above two revenue recognition policies apply to 2018 only and were updated as a result of our adoption of ASC Topic 842 effective January 1, 2019. Refer to Note 4 - Lessor for the updated policies.
Cash and Cash Equivalents	Cash and Cash EquivalentsCash and cash equivalents consist of cash on hand, including money market funds, and investments with original maturities of three months or less.
Receivable Sales	Receivable Sales We transfer certain portions of our receivable portfolios and normally account for those transfers as sales based on meeting the criteria for derecognition in accordance with ASC Topic 860 "Transfer and Servicing" of Financial Assets. Gains or losses on the sale of receivables depend, in part, on both (a) the cash proceeds and (b) the net non-cash proceeds received or paid. When we sell receivables, we normally receive beneficial interests in the transferred receivables from the purchasers as part of the proceeds. We may refer to these beneficial interests as a deferred purchase price. The beneficial interests obtained are initially measured at their fair value. We generally estimate fair value based on the present value of expected future cash flows, which are calculated using management's best estimates of the key assumptions including credit losses, prepayment rate and discount rates commensurate with the risks involved. Refer to Note 7 - Accounts Receivable, Net for additional information on our receivable sales.
Inventories	Inventories Inventories are carried at the lower of average cost or net realizable value. Inventories also include equipment that is returned at the end of the lease term. Returned equipment is recorded at the lower of remaining net book value or salvage value, which is normally not significant. We regularly review inventory quantities and record a provision for excess and/or obsolete inventory based primarily on our estimated forecast of product demand, production requirements and servicing commitments. Several factors may influence the realizability of our inventories, including our decision to exit a product line, technological changes and new product development. The provision for excess and/or obsolete raw materials and equipment inventories is based primarily on near-term forecasts of product demand and include consideration of new product introductions, as well as changes in remanufacturing strategies. The provision for excess and/or obsolete service parts inventory is based primarily on projected servicing requirements over the life of the related equipment populations. Refer to Note 9 - Inventories and Equipment on Operating Leases, Net for further discussion.
Land, Buildings and Equipment on Operating Leases	Land, Buildings and Equipment on Operating LeasesLand, buildings and equipment are recorded at cost. Buildings and equipment are depreciated over their estimated useful lives. Leasehold improvements are depreciated over the shorter of the lease term or the estimated useful life. Equipment on operating leases is depreciated to estimated salvage value over the lease term. Depreciation is computed using the straight-line method. Significant improvements are capitalized and maintenance and repairs are expensed. Refer to Note 9 - Inventories and Equipment on Operating Leases, Net and Note 10 - Land, Buildings, Equipment and Software, Net for further discussion.
Software - Internal Use and Product	Software - Internal Use and Product We capitalize direct costs associated with developing, purchasing or otherwise acquiring software for internal use and amortize these costs on a straight-line basis over the expected useful life of the software, beginning when the software is implemented (Internal Use Software). Costs incurred for upgrades and enhancements that will not result in additional functionality are expensed as incurred. Amounts expended for Internal Use Software are included in Cash Flows from Investing. We also capitalize certain costs related to the development of software solutions to be sold to our customers upon reaching technological feasibility (Product Software). These costs are amortized on a straight-line basis over the estimated economic life of the software. Amounts expended for Product Software are included in Cash Flows from Operations. We perform periodic reviews to ensure that unamortized Product Software costs remain recoverable from estimated future operating profits (net realizable value or NRV). Costs to support or service licensed software are charged to Costs of services as incurred. Refer to Note 10 - Land, Buildings, Equipment and Software, Net for further information.
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets Goodwill represents the excess of the purchase price over the fair value of acquired net assets in a business combination, including the amount assigned to identifiable intangible assets. The primary drivers that generate goodwill are the value of synergies between the acquired entities and the company and the acquired assembled workforce, neither of which qualifies as an identifiable intangible asset. Goodwill is not amortized, but rather is tested for impairment annually, or more frequently whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable and an impairment loss may have been incurred. We normally assess goodwill for impairment at least annually, during the fourth quarter based on balances as of October 1st, and more frequently if indicators of impairment exist or if a decision is made to sell or exit a business. Impairment testing for goodwill is done at the reporting unit level. A reporting unit is an operating segment or one level below an operating segment (a component) if the component constitutes a business for which discrete financial information is available, and segment management regularly reviews the operating results of that component. Consistent with the determination that we had one operating segment, we determined that there is one reporting unit and tested goodwill for impairment at the entity level. We perform an assessment of goodwill, utilizing either a qualitative or quantitative impairment test. The qualitative impairment test assesses several factors to determine whether it is more likely than not that the fair value of the entity is less than its carrying amount. If we conclude it is more likely than not that the fair value of the entity is less than its carrying amount, a quantitative fair value test is performed. In certain circumstances, we may also bypass the qualitative test and proceed directly to a quantitative impairment test. In a quantitative impairment test, we assess goodwill by comparing the carrying amount of the entity to its fair value. Fair value of the entity is determined by using a weighted combination of an income approach and a market approach. If the fair value exceeds the carrying value, goodwill is not considered impaired. If the carrying value exceeds the fair value, goodwill is considered impaired and we would recognize an impairment loss for the excess. In the second quarter 2020, as a result of the continued negative financial impacts from the COVID-19 pandemic on our 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, we determined there was a triggering event requiring an interim quantitative evaluation of Goodwill. After completing our interim impairment review, we concluded that Goodwill was not impaired in the second quarter 2020. Although business performance improved in the second half of 2020, the COVID-19 pandemic continued to have a significant impact on the Company’s revenues, expenses, cash flows and market capitalization in 2020. As result of these impacts as well as related macroeconomic and industry factors we elected to utilize a quantitative model for the assessment of the recoverability of our goodwill balance for our annual fourth quarter 2020 impairment test. After completing our annual quantitative impairment review in the fourth quarter 2020, we concluded that Goodwill was not impaired. Other intangible assets primarily consist of assets obtained in connection with business acquisitions, including installed customer base and distribution network relationships, existing technology, trademarks and non-compete agreements. We apply an impairment evaluation whenever events or changes in business circumstances indicate that the carrying value of our intangible assets may not be recoverable. Other intangible assets are amortized on a straight-line basis over their estimated economic lives. We believe that the straight-line method of amortization reflects an appropriate allocation of the cost of the intangible assets to earnings in proportion to the amount of economic benefits obtained annually by the Company. Refer to Note 13 - Goodwill and Intangible Assets, Net for further information.
Capitalization of Internal Costs	Software - Internal Use and Product We capitalize direct costs associated with developing, purchasing or otherwise acquiring software for internal use and amortize these costs on a straight-line basis over the expected useful life of the software, beginning when the software is implemented (Internal Use Software). Costs incurred for upgrades and enhancements that will not result in additional functionality are expensed as incurred. Amounts expended for Internal Use Software are included in Cash Flows from Investing. We also capitalize certain costs related to the development of software solutions to be sold to our customers upon reaching technological feasibility (Product Software). These costs are amortized on a straight-line basis over the estimated economic life of the software. Amounts expended for Product Software are included in Cash Flows from Operations. We perform periodic reviews to ensure that unamortized Product Software costs remain recoverable from estimated future operating profits (net realizable value or NRV). Costs to support or service licensed software are charged to Costs of services as incurred. Refer to Note 10 - Land, Buildings, Equipment and Software, Net for further information.
Impairment of Long-Lived Assets	Impairment of Long-Lived AssetsWe review the recoverability of our long-lived assets, including buildings, equipment, right-of-use leased assets, internal use software and other intangible assets, when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on our ability to recover the carrying value of the asset from the expected future pre-tax cash flows (undiscounted and without interest charges) of the related operations. If these cash flows are less than the carrying value of such asset, an impairment loss is recognized for the difference between estimated fair value and carrying value. Our primary measure of fair value is based on discounted cash flows. Long-lived assets to be disposed of by sale are reported at the lower of carrying amount or fair value less costs to sell. Long-lived assets to be disposed of other than by sale (e.g., by abandonment, cease-use) would continue to be classified as held and used until the long-lived asset is disposed of (e.g. abandoned or when asset ceases to be used).
Pension and Post-Retirement Benefit Obligations	Pension and Post-Retirement Benefit Obligations We sponsor various forms of defined benefit pension plans in several countries covering employees who meet eligibility requirements. Retiree health benefit plans cover U.S. and Canadian employees for retiree medical costs. We employ a delayed recognition feature in measuring the costs of pension and post-retirement benefit plans. This requires changes in the benefit obligations and changes in the value of assets set aside to meet those obligations to be recognized not as they occur, but systematically and gradually over subsequent periods. All changes are ultimately recognized as components of net periodic benefit cost, except to the extent they may be offset by subsequent changes. At any point, changes that have been identified and quantified but not recognized as components of net periodic benefit cost are recognized in Accumulated other comprehensive loss, net of tax. Several statistical and other factors that attempt to anticipate future events are used in calculating the expense, liability and asset values related to our pension and retiree health benefit plans. These factors include assumptions we make about the discount rate, expected return on plan assets, cash balance interest-crediting rate, rate of increase in healthcare costs, the rate of future compensation increases and mortality. Actual returns on plan assets are not immediately recognized in our income statement due to the delayed recognition requirement. In calculating the expected return on the plan asset component of our net periodic pension cost, we apply our estimate of the long-term rate of return on the plan assets that support our pension obligations, after deducting assets that are specifically allocated to Transitional Retirement Accounts (which are accounted for based on specific plan terms). For purposes of determining the expected return on plan assets, we utilize a market-related value approach in determining the value of the pension plan assets, rather than a fair market value approach. The primary difference between the two methods relates to systematic recognition of changes in fair value over time (generally two years) versus immediate recognition of changes in fair value. Our expected rate of return on plan assets is applied to the market-related asset value to determine the amount of the expected return on plan assets to be used in the determination of the net periodic pension cost. The market-related value approach reduces the volatility in net periodic pension cost that would result from using the fair market value approach. The discount rate is used to present value our future anticipated benefit obligations. The discount rate reflects the current rate at which benefit liabilities could be effectively settled considering the timing of expected payments for plan participants. In estimating our discount rate, we consider rates of return on high-quality fixed-income investments adjusted to eliminate the effects of call provisions, as well as the expected timing of pension and other benefit payments. Each year, the difference between the actual return on plan assets and the expected return on plan assets, as well as increases or decreases in the benefit obligation as a result of changes in the discount rate and other actuarial assumptions, are added to or subtracted from any cumulative actuarial gain or loss from prior years. This amount is the net actuarial gain or loss recognized in Accumulated other comprehensive loss. We amortize net actuarial gains and losses as a component of net pension cost for a year if, as of the beginning of the year, that net gain or loss (excluding asset gains or losses that have not been recognized in market-related value) exceeds 10% of the greater of the projected benefit obligation or the market-related value of plan assets (the corridor method). This determination is made on a plan-by-plan basis. If amortization is required for a particular plan, we amortize the applicable net gain or loss in excess of the 10% threshold on a straight-line basis in net periodic pension cost over the remaining service period of the employees participating in that pension plan. In plans where substantially all participants are inactive, the amortization period for the excess is the average remaining life expectancy of the plan participants. Our primary domestic plans allow participants the option of settling their vested benefits through the receipt of a lump-sum payment. The participant's vested benefit is considered fully settled upon payment of the lump sum. We have elected to apply settlement accounting and therefore we recognize the losses associated with settlements in this plan immediately upon the settlement of the vested benefits. Settlement accounting requires us to recognize a pro rata portion of the aggregate unamortized net actuarial losses upon settlement. The pro rata factor is computed as the percentage reduction in the projected benefit obligation due to the settlement of the participant's vested benefit. Refer to Note 19 - Employee Benefit Plans for further information regarding our Pension and Post-Retirement Benefit Obligations.
Research, Development and Engineering (RD&E)	Research, Development and Engineering (RD&E)Research, development and engineering costs are expensed as incurred. Sustaining engineering costs are incurred with respect to on-going product improvements or environmental compliance after initial product launch. Sustaining engineering costs were $54, $62 and $72 in for the years ended December 31, 2020, 2019 and 2018, respectively.
Government Grants/Assistance	Government Grants/Assistance Government grants related to income are recognized as a reduction of related expenses in the 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.
Foreign Currency Translation and Remeasurement	Foreign Currency Translation and Remeasurement The functional currency for most of our foreign operations is the local currency. Net assets are translated at current rates of exchange and income, expense and cash flow items are translated at average exchange rates for the applicable period. The translation adjustments are recorded in Accumulated other comprehensive loss. The U.S. Dollar is used as the functional currency for certain foreign subsidiaries that conduct their business in U.S. Dollars as well as foreign subsidiaries operating in highly inflationary economies. For these subsidiaries, non-monetary foreign currency assets and liabilities are translated using historical rates, while monetary assets and liabilities are translated at current rates, with the U.S. dollar effects of rate changes recorded in Currency (gains) and losses within Other expenses, net together with other foreign currency remeasurements.
Contract assets and liabilities	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.
Lessor	Lessor Accounting Policies: The following represent the updated disclosures to our Revenue Recognition policies as a result of the adoption of ASC Topic 842 effective January 1, 2019: Bundled Lease Arrangements: A portion of our direct sales of equipment to end customers are made through bundled lease arrangements which typically include equipment, services (maintenance and managed services) and financing components where the customer pays a single negotiated fixed minimum monthly payment for all elements over the contractual lease term. These arrangements also typically include an incremental, variable component for page volumes in excess of the contractual page volume minimums, which are often expressed in terms of price-per-image or page. Revenues under these bundled lease arrangements are allocated considering the relative standalone selling prices of the lease and non-lease deliverables included in the bundled arrangement. Lease deliverables include the equipment and financing, while the non-lease deliverables generally consist of the services, which include supplies. Consistent with the guidance in ASC 842 and ASC 606, regarding the allocation of fixed and variable consideration, we only consider the fixed payments for purposes of allocation to the lease elements of the contract. The fixed minimum monthly payments are multiplied by the number of months in the contract term to arrive at the total fixed lease payments that the customer is obligated to make over the lease term. Amounts allocated to the equipment and financing elements are then subjected to the accounting estimates noted below under Leases to ensure the values reflect standalone selling prices. The remainder of any fixed payments, as well as the variable payments, are allocated to non-lease elements because the variable consideration for incremental page volume or usage is considered attributable to the delivery of those elements. The consideration for the non-lease elements is not dependent on the consideration for equipment and vice versa and the consideration for the equipment and services is priced at the appropriate standalone values; therefore, the relative standalone selling price allocation method is not necessary. The revenue associated with the non-lease elements are normally accounted for as a single performance obligation being delivered in a series with delivery being measured as the usage billed to the customer. Accordingly, revenue from these agreements is recognized in a manner consistent with the guidance for Maintenance and Services agreements. Refer to Note 1 - Basis of Presentation and Summary of Significant Accounting Policies. Leases: The two primary accounting provisions we use to classify transactions as sales-type or operating leases are: (i) a review of the lease term to determine if it is for the major part of the economic life of the underlying equipment (defined as greater than 75%); and (ii) a review of the present value of the lease payments to determine if they are equal to or greater than substantially all of the fair market value of the equipment at the inception of the lease (defined as greater than 90%). Equipment placements included in arrangements meeting these conditions are accounted for as sales-type leases and revenue is recognized in a manner consistent with Equipment. Equipment placements included in arrangements that do not meet these conditions are accounted for as operating leases and revenue is recognized over the term of the lease. We consider the economic life of most of our products to be five years, since this represents the most frequent contractual lease term for our principal products and only a small percentage of our leases are for original terms longer than five years. There is no significant after-market for our used equipment. We believe five years is representative of the period during which the equipment is expected to be economically usable, with normal service, for the purpose for which it is intended. We perform an analysis of the stand-alone selling price of equipment based on cash selling prices during the applicable period. The cash selling prices are compared to the range of values determined for our leases. The range of cash selling prices must be reasonably consistent with the lease selling prices in order for us to determine that such lease prices reflects stand-alone value. Our lease pricing interest rates, which are used in determining customer payments in a bundled lease arrangement, are developed based upon a variety of factors including local prevailing rates in the marketplace and the customer’s credit history, industry and credit class. We reassess our pricing interest rates quarterly based on changes in the local prevailing rates in the marketplace. The pricing interest rates generally equal the implicit rates within the leases, as corroborated by our comparisons of cash to lease selling prices noted above. Additional Lease Payments: Certain leases may require the customer to pay property taxes and insurance on the equipment. In these instances, the amounts for property taxes and insurance that we invoice to customers and pay to third parties are considered variable payments and are recorded as other revenues and other cost of revenues, respectively. Amounts related to property taxes and insurance are not material. We exclude from variable payments all lessor costs that are explicitly required to be paid directly by a lessee on behalf of the lessor to a third party. Presentation: 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.
Lessee	Lessee Accounting Policies: We determine at inception whether an arrangement is a lease. Our leases do not include assets of a specialized nature, or the transfer of ownership at the end of the lease, and the exercise of end-of-lease purchase options, which are primarily in our equipment leases, is not reasonably assured at lease inception. Accordingly, the two primary criteria we use to classify transactions as operating or finance leases are: (i) a review of the lease term to determine if it is equal to or greater than 75% of the economic life of the asset, and (ii) a review of the present value of the minimum lease payments to determine if they are equal to or greater than 90% of the fair market value of the asset at the inception of the lease. Right-of-use (ROU) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. We also assess arrangements for goods or services to determine if the arrangement contains a lease at its inception. This assessment first considers whether there is an implicitly or explicitly identified asset in the arrangement and then whether there is a right to control the use of the asset. If there is an embedded lease within a contract, the Company determines the classification of the lease at the lease inception date consistent with standalone leases of assets. Operating leases are included in Other long-term assets, Accrued expenses and other current liabilities, and Other long-term liabilities in our Consolidated Balance Sheets. Finance leases are included in Land, buildings and equipment, net, Accrued expenses and other current liabilities, and Other long-term liabilities in our Consolidated Balance Sheets. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Since the implicit rate for almost all of our leases is not readily determinable, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is the rate of interest that we would have to pay to borrow, on a collateralized basis, an amount equal to the lease payments, in a similar economic environment and over a similar term. The rate is dependent on several factors, including the lease term and currency of the lease payments. Lease terms used to calculate the present value of lease payments generally do not include any options to extend, renew, or terminate the lease, as we do not have reasonable certainty at lease inception that these options will be exercised. We generally consider the economic life of our operating lease ROU assets to be comparable to the useful life of similar owned assets. We have elected the short-term lease exception, therefore operating lease ROU assets and liabilities do not include leases with a lease term of twelve months or less. Our leases generally do not provide a residual guarantee. The operating lease ROU asset also excludes lease incentives. Lease expense is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components. These components are accounted for separately for vehicle and equipment leases. We account for the lease and non-lease components as a single lease component for real estate leases of offices and warehouses. We review the impairment of our ROU assets consistent with the approach applied for our other long-lived assets. We review the recoverability of our long-lived assets when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on our ability to recover the carrying value of the asset from the expected undiscounted future pre-tax cash flows of the related operations. We have elected to include the carrying amount of operating lease liabilities in any tested asset group and include the associated operating lease payments in the undiscounted future pre-tax cash flows. Lessee Summary: 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.
Interest Expense	Equipment financing interest is determined based on an estimated cost of funds, applied against the estimated level of debt required to support our net finance receivables. The estimated cost of funds is based on the interest cost associated with actual borrowings determined to be in support of the leasing business. The estimated level of debt continues to be based on an assumed 7 to 1 leverage ratio of debt/equity as compared to our average finance receivable balance during the applicable period.
Fair Value of Financial Assets and Liabilities	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.

Revenue (Tables)

12 Months Ended

Dec. 31, 2020

Revenue from Contract with Customer [Abstract]

Disaggregation of revenue

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


	Year Ended December 31,
	2020		2019		2018
Primary geographical markets(1)
United States	$	4,186	$	5,429	$	5,610
Europe	1,883		2,326		2,625
Canada	393		518		569
Other	560		793		858
Total Revenues	$	7,022	$	9,066	$	9,662

Major product and services lines
Equipment	$	1,564	$	2,062	$	2,178
Supplies, paper and other sales	885		1,165		1,276
Maintenance agreements(2)	1,803		2,372		2,603
Service arrangements(3)	2,014		2,517		2,674
Rental and other	530		706		663
Financing	226		244		268

Total Revenues	$	7,022	$	9,066	$	9,662

Sales channels:

Direct equipment lease(4)	$	573	$	672	$	699
Distributors & resellers(5)	910		1,343		1,445
Customer direct	966		1,212		1,310
Total Sales	$	2,449	$	3,227	$	3,454

_____________

(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).

(4)Primarily reflects sales through bundled lease arrangements.

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

Capitalized contract cost


	Year Ended December 31,
	2020		2019		2018
Incremental direct costs of obtaining a contract	$	62	$	78	$	84
Amortization of incremental direct costs	81		88		95

Segment and Geographic Area Reporting (Tables)

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Revenue and long-lived assets by geography

Geographic Area Data

Geographic area data is based upon the location of the subsidiary reporting the revenue or long-lived assets and is as follows:


	Revenues						Long-Lived Assets (1)
	Year Ended December 31,						As of December 31,
	2020		2019		2018		2020		2019
United States	$	4,186	$	5,429	$	5,610	$	692	$	769
Europe	1,883		2,326		2,625		312		305
Canada	393		518		569		84		98
Other areas	560		793		858		43		59
Total	$	7,022	$	9,066	$	9,662	$	1,131	$	1,231

_____________

Lessor - (Tables)

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Components of lease income

The components of lease income are as follows:


	Location in Statements of Income	Year Ended December 31,
		2020		2019		2018
Revenue from sales type leases	Sales	$	573	$	672	$	699


Interest income on lease receivables	Financing	226		244		268


Lease income - operating leases	Services, maintenance and rentals	313		396		438
Variable lease income	Services, maintenance and rentals	66		107		120
Total Lease income		$	1,178	$	1,419	$	1,525

Components of lease income

The components of lease income are as follows:


	Location in Statements of Income	Year Ended December 31,
		2020		2019		2018
Revenue from sales type leases	Sales	$	573	$	672	$	699


Interest income on lease receivables	Financing	226		244		268


Lease income - operating leases	Services, maintenance and rentals	313		396		438
Variable lease income	Services, maintenance and rentals	66		107		120
Total Lease income		$	1,178	$	1,419	$	1,525

Components of lease income

The components of lease income are as follows:


	Location in Statements of Income	Year Ended December 31,
		2020		2019		2018
Revenue from sales type leases	Sales	$	573	$	672	$	699


Interest income on lease receivables	Financing	226		244		268


Lease income - operating leases	Services, maintenance and rentals	313		396		438
Variable lease income	Services, maintenance and rentals	66		107		120
Total Lease income		$	1,178	$	1,419	$	1,525

Acquisitions (Tables)

12 Months Ended

Dec. 31, 2020

Business Combinations [Abstract]

Schedule of business acquisitions

The following table summarizes the purchase price allocations for our 2020 acquisitions as of the acquisition dates:


	Weighted-Average Life	Total 2020 Acquisitions
Accounts/finance receivables		$	20
Intangible assets:
Customer relationships	9 years	69
Trademarks	9 years	9
Technology	3 years	9

Goodwill		111
Other assets		44
Total Assets acquired		262
Liabilities assumed		(59)
Total Purchase Price		$	203

Divestitures (Tables)

12 Months Ended

Dec. 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

Summarized financial information - discontinued operations

Summarized financial information for our Discontinued Operations is as follows:


	Year Ended December 31,
	2020		2019		2018
Revenue	$	—	$	79	$	168



Income from operations	$	—	$	176	$	74
Gain on disposal	—		629		—
Income before income taxes	—		805		74
Income tax expense	—		95		10
Income from discontinued operations, net of tax	—		710		64
Income from discontinued operations attributable to noncontrolling interests, net of tax	—		5		9
Income from discontinued operations, attributable to Xerox, net of tax	$	—	$	705	$	55

The following is a summary of selected financial information for our Discontinued Operations:


	Year Ended December 31,
	2020		2019		2018
Cost and Expenses:
Cost of revenues	$	—	$	44	$	110

Other expenses	—		6		9
Total Costs and Expenses	$	—	$	50	$	119
Selected amounts included in Costs and Expenses:
Depreciation and amortization	$	—	$	—	$	—
Restructuring and related costs, net	—		—		1







Other:
Equity in net income of FX	$	—	$	147	$	25
Net income attributable to noncontrolling interest - XIP	—		5		9
Capital expenditures	—		—		—

- Definition

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

+ References

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+ Details

Accounts Receivable, Net (Tables)

12 Months Ended

Dec. 31, 2020

Receivables [Abstract]

Accounts receivable, net

Accounts receivable, net were as follows:


	December 31,
	2020		2019
Invoiced	$	735	$	980
Accrued (1)	217		311
Allowance for doubtful accounts	(69)		(55)
Accounts receivable, net	$	883	$	1,236

____________

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

Allowance for doubtful accounts

The allowance for doubtful accounts was as follows:


Balance at December 31, 2018	$	56
Provision	18
Charge-offs	(19)
Recoveries and other(1)	—
Balance at December 31, 2019	$	55
Provision	35
Charge-offs	(22)
Recoveries and other(1)	1
Balance at December 31, 2020	$	69

_____________

(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 activity

Accounts receivable sales activity was as follows:


	Year Ended December 31,
	2020		2019		2018
Accounts receivable sales(1)	$	333	$	393	$	405

_____________

Finance Receivables, Net (Tables)

12 Months Ended

Dec. 31, 2020

Receivables [Abstract]

Finance receivables

Finance receivables, net were as follows:


	December 31,
	2020		2019
Gross receivables	$	3,691	$	3,865
Unearned income	(393)		(425)
Subtotal	3,298		3,440
Residual values	—		—
Allowance for doubtful accounts	(133)		(89)
Finance Receivables, Net	3,165		3,351
Less: Billed portion of finance receivables, net	99		111
Less: Current portion of finance receivables not billed, net	1,082		1,158
Finance Receivables Due After One Year, Net	$	1,984	$	2,082

Schedule of financing receivables, minimum payments

A summary of our gross finance receivables' future contractual maturities, including those previously billed, is as follows:


	December 31,
	2020		2019
12 Months	$	1,426	$	1,490
24 Months	1,006		1,052
36 Months	697		728
48 Months	395		422
60 Months	152		158
Thereafter	15		15
Total	$	3,691	$	3,865

Allowance for credit losses, financing receivables


Allowance for Credit Losses:	United States		Canada(1)		Europe(1)(2)		Total
Balance at December 31, 2018	$	53	$	12	$	27	$	92
Provision	20		1		7		28
Charge-offs	(15)		(5)		(14)		(34)
Recoveries and other(3)	1		2		—		3

Balance at December 31, 2019	$	59	$	10	$	20	$	89
Provision	41		8		32		81
Charge-offs	(23)		(5)		(14)		(42)
Recoveries and other(3)	—		2		3		5

Balance at December 31, 2020	$	77	$	15	$	41	$	133
Finance Receivables Collectively Evaluated for Impairment:
December 31, 2019(4)	$	1,922	$	326	$	1,192	$	3,440
December 31, 2020(4)	$	1,823	$	297	$	1,178	$	3,298

_____________

(1)Prior year amounts have been recast 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 $133 and $89 at December 31, 2020 and 2019, respectively.

Credit quality indicators for financing receivables

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


	December 31, 2020														December 31, 2019
	2020		2019		2018		2017		2016		Prior		Total Finance Receivables		Total Finance Receivables
Total United States (Direct):
Low Credit Risk	$	164	$	151	$	128	$	71	$	32	$	4	$	550	$	640
Average Credit Risk	54		95		52		26		8		2		237		331
High Credit Risk	90		42		27		13		5		3		180		132
Total	308		288		207		110		45		9		967		1,103

Total United States (Indirect):
Low Credit Risk	193		140		79		33		7		—		452		258
Average Credit Risk	129		124		71		31		8		—		363		445
High Credit Risk	19		9		9		3		1		—		41		116
Total	341		273		159		67		16		—		856		819

Canada(1)
Low Credit Risk	37		34		24		10		5		1		111		163
Average Credit Risk	46		39		26		17		6		1		135		97
High Credit Risk	18		10		10		10		3		—		51		66
Total	101		83		60		37		14		2		297		326

EMEA(1)(2)
Low Credit Risk	197		177		131		62		20		4		591		655
Average Credit Risk	170		160		108		51		17		4		510		479
High Credit Risk	23		24		15		10		4		1		77		58
Total	390		361		254		123		41		9		1,178		1,192

Total Finance Receivables
Low Credit Risk	591		502		362		176		64		9		1,704		1,716
Average Credit Risk	399		418		257		125		39		7		1,245		1,352
High Credit Risk	150		85		61		36		13		4		349		372
Total	$	1,140	$	1,005	$	680	$	337	$	116	$	20	$	3,298	$	3,440

_____________

(1)Prior year amounts have been recast 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.

Aging of billed finance receivables

The aging of our billed finance receivables is as follows:


	December 31, 2020
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing






Direct	$	33	$	6	$	9	$	48	$	919	$	967	$	74
Indirect	21		4		3		28		828		856		—
Total United States	54		10		12		76		1,747		1,823		74
Canada	8		2		—		10		287		297		12





EMEA (1)	12		3		2		17		1,161		1,178		23

Total	$	74	$	15	$	14	$	103	$	3,195	$	3,298	$	109


	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)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..

Inventories and Equipment on Operating Leases, Net (Tables)

12 Months Ended

Dec. 31, 2020

Inventories and Equipment on Operating Leases, Net [Abstract]

Schedule of inventories by major category

The following is a summary of Inventories by major category:


	December 31,
	2020		2019
Finished goods	$	707	$	576
Work-in-process	43		47
Raw materials	93		71
Total Inventories	$	843	$	694

Schedule of equipment on operating leases and related accumulated depreciation

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


	December 31,
	2020		2019
Equipment on operating leases	$	1,376	$	1,443
Accumulated depreciation	(1,080)		(1,079)
Equipment on operating leases, net	$	296	$	364

Schedule of maturities and additional information related to operating lease liabilities

Estimated minimum future revenues associated with Equipment on operating leases are as follows:


	December 31,
	2020		2019
12 months	$	215	$	226
24 months	129		139
36 months	74		84
48 months	32		39
60 months	12		12
Thereafter	1		2
Total	$	463	$	502

Maturities and additional information related to operating lease liabilities are as follows:


	December 31,
	2020		2019
12 months	$	104	$	109
24 months	88		87
36 months	68		73
48 months	37		56
60 months	25		24
Thereafter	52		45
Total Lease payments	374		394
Less: Imputed interest	41		47
Total Operating lease liabilities	$	333	$	347

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

12 Months Ended

Dec. 31, 2020

Land, Buildings and Equipment, Net [Abstract]

Land, buildings and equipment, net

Land, buildings and equipment, net were as follows:


		December 31,
	Estimated Useful Lives (Years)	2020		2019
Land		$	13	$	12
Building and building equipment	25 to 50	814		794
Leasehold improvements	Varies	124		135
Plant machinery	5 to 12	1,149		1,124
Office furniture and equipment	3 to 15	476		565
Other	4 to 20	45		45
Construction in progress		17		23
Subtotal		2,638		2,698
Accumulated depreciation		(2,231)		(2,272)
Land, buildings and equipment, net		$	407	$	426

Lessee (Tables)

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Schedule of components of lease expense

The components of lease expense are as follows:


	Year Ended December 31,
	2020		2019
Operating lease expense	$	113	$	125
Short-term lease expense	20		21
Variable lease expense(1)	47		48
Sublease income	(2)		(1)

Total Lease expense	$	178	$	193

_____________

(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 ROU assets, net and operating lease liabilities were reported in the Consolidated Balance Sheets as follows:


	December 31,
	2020		2019
Other long-term assets	$	310	$	319

Accrued expenses and other current liabilities	$	83	$	87
Other long-term liabilities	250		260
Total Operating lease liabilities	$	333	$	347

Schedule of supplemental information related to operating leases

Supplemental information related to operating leases is as follows:


	Year Ended December 31,
	2020			2019
Cash paid for amounts included in the measurement of lease liabilities - Operating cash flows	$	119		$	126
Right-of-use assets obtained in exchange for new lease liabilities (1)	76			75
Weighted-average remaining lease term	5 years			4 years
Weighted-average discount rate	5.03		%	5.47		%

_____________

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

Schedule of maturities and additional information related to operating lease liabilities

Estimated minimum future revenues associated with Equipment on operating leases are as follows:


	December 31,
	2020		2019
12 months	$	215	$	226
24 months	129		139
36 months	74		84
48 months	32		39
60 months	12		12
Thereafter	1		2
Total	$	463	$	502

Maturities and additional information related to operating lease liabilities are as follows:


	December 31,
	2020		2019
12 months	$	104	$	109
24 months	88		87
36 months	68		73
48 months	37		56
60 months	25		24
Thereafter	52		45
Total Lease payments	374		394
Less: Imputed interest	41		47
Total Operating lease liabilities	$	333	$	347

Investment in Affiliates, at Equity (Tables)

12 Months Ended

Dec. 31, 2020

Equity Method Investments and Joint Ventures [Abstract]

Total equity in net income of unconsolidated affiliates

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


	Year Ended December 31,
	2020		2019		2018
Fuji Xerox(1)	$	—	$	147	$	25
Other	4		8		8
Total Equity in net income of unconsolidated affiliates	$	4	$	155	$	33

_____________

(1)Equity in net income for Fuji Xerox is reported in Income from discontinued operations, net of tax for 2019 and 2018. The equity in net income for Fuji Xerox in 2019 is through the date of sale.

Summarized financial information of Fuji Xerox

Summarized financial information for Fuji Xerox is as follows:


	Through Date of Sale		Year Ended December 31, 2018

Summary of Operations
Revenues	$	7,667	$	9,161
Costs and expenses	6,814		8,880
Income before income taxes	853		281
Income tax expense	258		160
Net Income	595		121
Less: Net income - noncontrolling interests	3		2
Net Income - Fuji Xerox	$	592	$	119


Balance Sheet	At Date of Sale		December 31, 2018
Assets
Current assets	$	4,876	$	4,179
Long-term assets	3,964		4,034
Total Assets	$	8,840	$	8,213
Liabilities and Equity
Short-term debt	$	49	$	130
Other current liabilities	1,932		1,827
Long-term debt	16		24
Other long-term liabilities	514		395
Noncontrolling interests	18		30
Fuji Xerox shareholders' equity	6,311		5,807
Total Liabilities and Equity	$	8,840	$	8,213

Exchange rates used to translate results of equity investments in affiliates

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


Financial Statement	Exchange Basis	2019	2018
Summary of Operations	Weighted average rate	109.03	110.28
Balance Sheet	Year-end rate	108.83	110.26

Transactions with Fuji Xerox

Transactions with Fuji Xerox were as follows:


	Year Ended December 31,
	2020		2019		2018

Royalty revenue earned	$	88	$	99	$	96
Inventory purchases from Fuji Xerox	1,077		1,337		1,501
Inventory sales to Fuji Xerox	25		33		43
R&D payments received from Fuji Xerox	1		—		1
R&D payments paid to Fuji Xerox	5		4		8

Goodwill and Intangible Assets, Net (Tables)

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of goodwill

Goodwill

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


	Total
Balance at December 31, 2017	$	3,921
Foreign currency translation	(63)
Balance at December 31, 2018	$	3,858
Foreign currency translation	28
Acquisitions	14



Balance at December 31, 2019	$	3,900
Foreign currency translation	60
Acquisitions:
U.K. Acquisitions	98
Canada Acquisition	10
Other	3
Balance at December 31, 2020(1)	$	4,071

_____________

(1)Balance at December 31, 2020 includes $3 of Goodwill recorded by Xerox Holdings.

Schedule of intangible assets, net, by major class

Intangible Assets, Net

Intangible assets, net were $237 at December 31, 2020. Intangible assets were comprised of the following:


		December 31, 2020						December 31, 2019
	Weighted Average Amortization	Gross Carrying Amount		Accumulated Amortization		Net Amount(1)		Gross Carrying Amount		Accumulated Amortization		Net Amount
Customer relationships	10 years	$	185	$	74	$	111	$	140	$	86	$	54
Distribution network	25 years	123		103		20		123		99		24
Trademarks	19 years	235		138		97		258		146		112
Technology and non-compete	9 years	29		20		9		18		9		9
Total Intangible Assets		$	572	$	335	$	237	$	539	$	340	$	199

_____________

(1)Balance at December 31, 2020 includes $8 of Intangible assets, net, related to existing technology, recorded by Xerox Holdings.

Restructuring Programs (Tables)

12 Months Ended

Dec. 31, 2020

Restructuring and Related Activities [Abstract]

Restructuring program activity

A summary of our restructuring program activity for the three years ended December 31, 2020, 2019 and 2018 is as follows:


	Severance and Related Costs		Other Contractual Termination Costs(2)		Asset Impairments(3)(4)		Total
Balance at December 31, 2017	$	108	$	1	$	—	$	109
Restructuring provision	175		14		—		189
Reversals of prior charges	(33)		—		—		(33)
Net Current Period Charges(1)	142		14		—		156
Charges against reserve and currency	(156)		(14)		—		(170)
Balance at December 31, 2018	$	94	$	1	$	—	$	95
Restructuring provision	81		19		61		161
Reversals of prior charges	(24)		(5)		(5)		(34)
Net Current Period Charges(1)	57		14		56		127
Charges against reserve and currency	(85)		(11)		(56)		(152)
Balance at December 31, 2019	$	66	$	4	$	—	$	70
Restructuring provision	107		3		6		116
Reversals of prior charges	(21)		(2)		(6)		(29)
Net Current Period Charges(1)	86		1		—		87


Charges against reserve and currency	(74)		(1)		—		(75)
Balance at December 31, 2020	$	78	$	4	$	—	$	82

_____________

(1)Represents net amount recognized within the Consolidated Statements of Income for the years 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.

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

Reconciliation to the consolidated statements of cash flows

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


	Year Ended December 31,
	2020		2019		2018
Charges against reserve and currency	$	(75)	$	(152)	$	(170)
Asset impairments	—		56		—
Effects of foreign currency and other non-cash items	(6)		3		1
Restructuring Cash Payments	$	(81)	$	(93)	$	(169)

Restructuring and related costs

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


	Year Ended December 31,
	2020		2019
Retention related severance/bonuses(1)	$	4	$	39
Contractual severance costs(2)	(2)		43
Consulting and other costs(3)	4		20
	$	6	$	102

_____________

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

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

Supplementary Financial Information (Tables)

12 Months Ended

Dec. 31, 2020

Supplemental Financial Information [Abstract]

Other assets and liabilities

The components of Other assets and liabilities were as follows:


	December 31,
	2020		2019
Other Current Assets

Income taxes receivable	$	29	$	27
Royalties, license fees and software maintenance	21		25
Restricted cash	23		—
Prepaid expenses	31		29



Advances and deposits	34		30
Other	113		90

Total Other Current Assets	$	251	$	201
Other Long-term Assets
Income taxes receivable	$	7	$	9
Prepaid pension costs	617		451


Internal use software, net	118		122

Restricted cash	43		55

Customer contract costs, net	158		176

Operating lease right-of-use asset	310		319
Deferred compensation plan investments	18		19
Investments in affiliates, at equity(1)	47		46
Other	137		141

Total Other Long-term Assets	$	1,455	$	1,338
Accrued Expenses and Other Current Liabilities

Income taxes payable	$	7	$	7
Other taxes payable	68		79
Operating lease obligation	83		87
Financing lease obligation	2		2
Interest payable	56		38
Restructuring reserves	82		70
Restructuring related costs	21		37

Product warranties	5		6
Dividends payable(2)	59		66
Distributor and reseller rebates/commissions	123		167

Unearned income and other revenue deferrals	140		158
Administration and overhead	52		86
Other	142		181

Total Accrued Expenses and Other Current Liabilities(3)	$	840	$	984
Other Long-term Liabilities
Deferred taxes	$	35	$	37
Income taxes payable	57		64
Operating lease obligation	250		260
Finance lease obligation	7		5
Environmental reserves	9		9

Restructuring reserves	2		—
Other	137		137

Total Other Long-term Liabilities	$	497	$	512

_____________

(1)Refer to Note 12 - Investments in Affiliates, at Equity for additional information.

(2)Represents dividends payable by Xerox Holdings Corporation on Common and Preferred Stock.

(3)Xerox's balance of $750 at December 31, 2020 excludes Interest Payable of $32 and Dividends Payable of $59. Xerox's balance of $918 at December 31, 2019 excludes Dividends Payable of $66.

Schedule of restricted cash

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


	December 31,
	2020		2019
Cash and cash equivalents	$	2,625	$	2,740
Restricted cash
Litigation deposits in Brazil	42		55
Escrow and cash collections related to finance receivable sales(1)	22		—
Other restricted cash	2		—
Total Restricted Cash	66		55


Cash, cash equivalents and restricted cash	$	2,691	$	2,795

__________________________

(1)Represents collections on finance receivables pledged for secured borrowings that will be remitted to lenders in the following month.

Restricted cash balance sheet location

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


	December 31,
	2020		2019
Other current assets	$	23	$	—
Other long-term assets	43		55
Total Restricted cash	$	66	$	55

Pension and other benefit liabilities

Pension and Other Benefit Liabilities


	December 31,
	2020		2019
Pension liabilities(1)	$	1,474	$	1,616
Accrued compensation liabilities	70		69
Deferred compensation liabilities(2)	22		22
Pension and other benefit liabilities	$	1,566	$	1,707

__________________________

(1)Refer to Note 19 - Employee Benefit Plans for additional information regarding pension liabilities.

Summarized cash flow information

Summarized cash flow information is as follows:


	Year Ended December 31,
	2020		2019		2018
Provision for receivables	$	116	$	49	$	40
Provision for inventory	31		24		30
Provision for product warranty	8		12		14
Depreciation of buildings and equipment	87		101		148
Depreciation and obsolescence of equipment on operating leases	183		225		249
Amortization of internal use software	42		59		81

Amortization of acquired intangible assets	56		45		48
Amortization of customer contract costs(1)	85		93		100
Cost of additions to land, buildings and equipment	44		41		55
Cost of additions to internal use software	30		24		35
Common stock dividends - Xerox Holdings	216		229		255
Preferred stock dividends - Xerox Holdings	14		14		14
Payments to noncontrolling interests	3		14		17
Repurchases related to stock-based compensation - Xerox Holdings	19		28		9

__________________________

Debt (Tables)

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Schedule of short-term borrowings

Short-term borrowings were as follows:


	December 31,
	2020		2019


Short-term debt and current portion of long-term debt
Xerox Holdings Corporation	$	—	$	—
Xerox Corporation	—		1,049
Xerox - Other Subsidiaries(1)	394		—
Total	$	394	$	1,049

_____________

(1)Represents subsidiaries of Xerox Corporation.

Schedule of long-term debt

Long-term debt was as follows:


					December 31,
	Stated Rate		Weighted Average Interest Rates at December 31, 2020(1)		2020		2019
Xerox Holdings Corporation







Senior Notes due 2025	5.00	%	4.95	%	$	750	$	—
Senior Notes due 2028	5.50	%	5.40	%	750		—
Subtotal - Xerox Holdings Corporation					$	1,500	$	—
Xerox Corporation
Senior Notes due 2020					$	—	$	313
Senior Notes due 2020					—		362
Senior Notes due 2020					—		376
Senior Notes due 2021					—		1,062
Senior Notes due 2022	4.07	%	4.07	%	300		300
Senior Notes due 2023(2)	4.38	%	3.68	%	1,000		1,000
Senior Notes due 2024	3.80	%	3.84	%	300		300
Senior Notes due 2035	4.80	%	4.84	%	250		250
Senior Notes due 2039	6.75	%	6.78	%	350		350
Subtotal - Xerox Corporation					$	2,200	$	4,313
Xerox - Other Subsidiaries(3)
Secured Borrowing - July 2020	1.76	%	1.73	%	$	267	$	—
Secured Borrowing - December 2020	1.74	%	1.76	%	500		—
Subtotal - Xerox - Other Subsidiaries					$	767	$	—







Principal debt balance					$	4,467	$	4,313
Xerox Holdings Corporation - Debt issuance costs					(13)		—
Xerox Corporation - Debt issuance costs					(11)		(17)
Xerox - Other subsidiaries - Debt issuance costs					(3)		—
Subtotal - Debt issuance costs					(27)		(17)
Unamortized premium (discount)					3		(16)
Fair value adjustments(4)
Terminated swaps					1		1
Current swaps					—		1
Less: current maturities					(394)		(1,049)
Total Long-term Debt					$	4,050	$	3,233

_____________

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

(3)The rates disclosed for Other Subsidiaries of Xerox Corporation are variable interest rates. Refer to the Secured Borrowings and Collateral section below for additional information.

Schedule of maturities of long-term debt

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


	2021(1)		2022		2023		2024		2025		Thereafter		Total
Xerox Holdings Corporation	$	—	$	—	$	—	$	—	$	750	$	750	$	1,500
Xerox Corporation	—		300		1,000		300		—		600		2,200
Xerox - Other Subsidiaries(2)	395		291		81		—		—		—		767
Total	$	395	$	591	$	1,081	$	300	$	750	$	1,350	$	4,467

_____________

(1)Current portion of long-term debt maturities for 2021 are $96, $107, $100 and $92 for the first, second, third and fourth quarters, respectively.

(2)Represents subsidiaries of Xerox Corporation.

Schedule of Assets and Liabilities held by SPE

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


	December 31, 2020
Assets held by SPEs
Billed portion of finance receivables, net	$	28
Finance receivables, net	350
Finance receivables due after one year, net	510
Equipment on operating leases, net	8
Restricted cash(1)	22
Total Assets	$	918
Liabilities held by SPEs
Current portion of long-term debt, net(2)	$	394
Long term debt, net(3)	370
Total Liabilities	$	764

_____________

(1)Restricted cash is included in Other current assets in our Consolidated Balance Sheet.

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

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

Interest income and interest expense disclosure

Interest expense and interest income was as follows:


	Year Ended December 31,
	2020		2019		2018
Interest expense(1) (2)	$	215	$	236	$	244
Interest income(3)	240		260		283

_____________

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

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

- Definition

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

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
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Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=119993939&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 505
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-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of foreign exchange contracts gross notional values

The following is a summary of the primary hedging positions and corresponding fair values as of December 31, 2020:


Currencies Hedged (Buy/Sell)	Gross Notional Value		Fair Value Asset(1)
Japanese Yen/U.S. Dollar	$	398	$	6
Euro/U.K. Pound Sterling	237		—
Japanese Yen/Euro	186		(2)
U.S. Dollar/Euro	90		(1)
U.S. Dollar/Canadian Dollar	46		(1)
Euro/U.S. Dollar	46		—
U.K. Pound Sterling/Euro	37		—
U.S. Dollar/Japanese Yen	31		—

Euro/Danish Krone	21		—
U.S. Dollar/Russian Ruble	15		—
U.S. Dollar/Israeli Shekel	9		—





U.S. Dollar/Brazilian Real	9		—
Euro/Norwegian Kroner	4		—




All Other	32		—
Total Foreign exchange hedging	$	1,161	$	2

____________

(1)Represents the net receivable (payable) amount included in the Consolidated Balance Sheet at December 31, 2020.

Schedule of derivative instruments fair value

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


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

Interest rate swaps	Other long-term assets	—		1

	Net Designated Derivative Asset (Liability)	$	2	$	(3)

Derivatives NOT Designated as Hedging Instruments
Foreign exchange contracts – forwards	Other current assets	$	3	$	1
	Accrued expenses and other current liabilities	(3)		(3)
	Net Undesignated Derivative Liability	$	—	$	(2)

Summary of Derivatives	Total Derivative Assets	$	7	$	3
	Total Derivative Liabilities	(5)		(8)
	Net Derivative Asset (Liability)	$	2	$	(5)

Schedule of fair value hedges gains (losses)

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


		Year Ended December 31,
Derivatives in Fair Value Relationships	Location of Gain (Loss) Recognized in Income	Derivative (Loss) Gain Recognized in Income						Hedged Item Gain (Loss) Recognized in Income
		2020		2019		2018		2020		2019		2018
Interest rate contracts	Interest expense	$	(1)	$	4	$	(3)	$	1	$	(4)	$	3

Schedule of cash flow hedges gain (loss)


	Year Ended December 31,
Derivatives in Cash Flow Hedging Relationships	Derivative Gain Recognized in OCI (Effective Portion)						Location of Derivative Gain (Loss) Reclassified from AOCI into Income (Effective Portion)	(Loss) Gain Reclassified from AOCI to Income (Effective Portion)
	2020		2019		2018			2020		2019		2018
Foreign exchange contracts – forwards/options	$	4	$	2	$	9	Cost of sales	$	(1)	$	9	$	(14)

Schedule of derivatives not designated as hedging instruments gains (losses)

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


		Year Ended December 31,
Derivatives NOT Designated as Hedging Instruments	Location of Derivative Gain (Loss)	2020		2019		2018
Foreign exchange contracts – forwards	Other expense – Currency gains (losses), net	$	14	$	(6)	$	21

Fair Value of Financial Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2020

Fair Value Disclosures [Abstract]

Schedule of fair value of financial assets and liabilities


	As of December 31,
	2020		2019
Assets
Foreign exchange contracts - forwards	$	6	$	2
Foreign currency options	1		—
Interest rate swaps	—		1

Deferred compensation investments in mutual funds	18		19
Total	$	25	$	22
Liabilities
Foreign exchange contracts - forwards	$	5	$	8


Deferred compensation plan liabilities	17		18
Total	$	22	$	26

Schedule of estimated fair values of financial assets and liabilities not measured at fair value on a recurring basis

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


	December 31, 2020				December 31, 2019
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Cash and cash equivalents	$	2,625	$	2,625	$	2,740	$	2,740
Accounts receivable, net	883		883		1,236		1,236
Short-term debt and current portion of long-term debt	394		396		1,049		1,054
Long-term debt
Xerox Holdings Corporation	$	1,493	$	1,596	$	—	$	—
Xerox Corporation	2,187		2,298		3,233		3,331
Xerox - Other Subsidiaries(1)	370		372		—		—
Total Long-term debt	$	4,050	$	4,266	$	3,233	$	3,331

_____________

(1)Represents subsidiaries of Xerox Corporation.

- Definition

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)

12 Months Ended

Dec. 31, 2020

Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]

Schedule of net funded status


	Pension Benefits
	U.S. Plans				Non-U.S. Plans				Retiree Health
	2020		2019		2020		2019		2020		2019
Change in Benefit Obligation:
Benefit obligation, January 1	$	3,598	$	3,234	$	6,492	$	6,007	$	385	$	385
Service cost	2		2		20		22		2		2
Interest cost	196		218		113		153		12		15
Plan participants' contributions	—		—		3		3		10		10
Actuarial loss	240		564		439		472		4		8
Currency exchange rate changes	—		—		374		114		3		5
Plan Amendments/Curtailments	—		—		2		(2)		(11)		—

Benefits paid/settlements	(289)		(420)		(284)		(270)		(35)		(40)
Other	—		—		—		(7)		—		—
Benefit Obligation, December 31	$	3,747	$	3,598	$	7,159	$	6,492	$	370	$	385

Change in Plan Assets:
Fair value of plan assets, January 1	$	2,493	$	2,358	$	6,385	$	5,729	$	—	$	—
Actual return on plan assets	563		529		637		680		—		—
Employer contributions	35		26		104		115		25		30
Plan participants' contributions	—		—		3		3		10		10
Currency exchange rate changes	—		—		354		135		—		—
Benefits paid/settlements	(289)		(420)		(284)		(270)		(35)		(40)
Other	—		—		—		(7)		—		—
Fair Value of Plan Assets, December 31	$	2,802	$	2,493	$	7,199	$	6,385	$	—	$	—

Net Funded Status at December 31(1)	$	(945)	$	(1,105)	$	40	$	(107)	$	(370)	$	(385)

Amounts Recognized in the Consolidated Balance Sheets:
Other long-term assets	$	—	$	—	$	617	$	451	$	—	$	—
Accrued compensation and benefit costs	(24)		(25)		(24)		(22)		(30)		(33)
Pension and other benefit liabilities	(921)		(1,080)		(553)		(536)		—		—
Post-retirement medical benefits	—		—		—		—		(340)		(352)
Net Amounts Recognized	$	(945)	$	(1,105)	$	40	$	(107)	$	(370)	$	(385)

Accumulated Benefit Obligation	$	3,747	$	3,598	$	7,018	$	6,326

_____________

(1)Includes under-funded and unfunded plans.

Schedule of amounts in accumulated other comprehensive loss to be recognized over next fiscal year

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


	Pension Benefits
	U.S. Plans				Non-U.S. Plans				Retiree Health
	2020		2019		2020		2019		2020		2019
Net actuarial loss (gain)	$	874	$	1,059	$	1,471	$	1,462	$	(23)	$	(29)
Prior service (credit) cost	(1)		(3)		27		22		(99)		(164)
Total Pre-tax loss (gain)	$	873	$	1,056	$	1,498	$	1,484	$	(122)	$	(193)

Schedule of accumulated benefit obligations in excess of fair value of plan assets


	December 31, 2020				December 31, 2019
	Accumulated Benefit Obligation		Fair Value of Plan Assets		Accumulated Benefit Obligation		Fair Value of Plan Assets
Underfunded Plans:
U.S.	$	3,408	$	2,802	$	3,261	$	2,493
Non U.S.	921		873		767		697

Unfunded Plans:
U.S.	$	339	$	—	$	337	$	—
Non U.S.	502		—		469		—

Total Underfunded and Unfunded Plans:
U.S.	$	3,747	$	2,802	$	3,598	$	2,493
Non U.S.	1,423		873		1,236		697
Total	$	5,170	$	3,675	$	4,834	$	3,190

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


	December 31, 2020				December 31, 2019
	Benefit Obligation		Fair Value of Plan Assets		Benefit Obligation		Fair Value of Plan Assets
Underfunded Plans:
U.S.	$	3,408	$	2,802	$	3,261	$	2,493
Non U.S.	942		873		780		697

Unfunded Plans:
U.S.	$	339	$	—	$	337	$	—
Non U.S.	512		—		479		—

Total Underfunded and Unfunded Plans:
U.S.	$	3,747	$	2,802	$	3,598	$	2,493
Non U.S.	1,454		873		1,259		697
Total	$	5,201	$	3,675	$	4,857	$	3,190

Schedule of defined benefit pension assets and obligations by geography

Our pension plan assets and benefit obligations at December 31, 2020 were as follows:


	Fair Value of Pension Plan Assets		Pension Benefit Obligations		Net Funded Status
U.S. funded	$	2,802	$	3,408	$	(606)
U.S. unfunded	—		339		(339)
Total U.S.	2,802		3,747		(945)
U.K.	4,707		4,218		489
Netherlands	1,266		1,226		40
Canada	794		797		(3)
Germany	—		395		(395)

Other	432		523		(91)
Total	$	10,001	$	10,906	$	(905)

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

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


	Year Ended December 31,
	Pension Benefits
	U.S. Plans						Non-U.S. Plans						Retiree Health
	2020		2019		2018		2020		2019		2018		2020		2019		2018
Components of Net Periodic Benefit Costs:
Service cost	$	2	$	2	$	2	$	20	$	22	$	27	$	2	$	2	$	4
Interest cost(1)	196		218		63		113		153		149		12		15		23
Expected return on plan assets(2)	(217)		(210)		(67)		(191)		(233)		(244)		—		—		—
Recognized net actuarial loss (gain)	27		24		22		58		43		56		(1)		(5)		—
Amortization of prior service credit	(2)		(2)		(2)		(1)		(2)		(4)		(76)		(77)		(19)
Recognized settlement loss	53		93		173		1		1		1		—		—		—
Recognized curtailment gain	—		—		—		(1)		—		(1)		—		—		—
Defined Benefit Plans	59		125		191		(1)		(16)		(16)		(63)		(65)		8
Defined contribution plans	1		26		37		18		23		29		n/a		n/a		n/a
Net Periodic Benefit Cost (Credit)	60		151		228		17		7		13		(63)		(65)		8
Other changes in plan assets and benefit obligations recognized in Other Comprehensive Income (Loss):
Net actuarial (gain) loss(3)	(105)		243		(50)		(9)		24		33		4		8		(63)
Prior service cost (credit)	—		—		—		4		—		41		(11)		—		(234)
Amortization of net actuarial (loss) gain	(80)		(117)		(195)		(59)		(44)		(57)		1		5		—
Amortization of net prior service credit	2		2		2		1		2		4		76		77		19
Curtailment gain	—		—		—		1		—		1		—		—		—
Total Recognized in Other Comprehensive Income (Loss)(4)	(183)		128		(243)		(62)		(18)		22		70		90		(278)
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income (Loss)	$	(123)	$	279	$	(15)	$	(45)	$	(11)	$	35	$	7	$	25	$	(270)

_____________

(4)Amounts represent the pre-tax effect included in Other comprehensive income (loss). Refer to Note 25 - Other Comprehensive Income (Loss) for the related tax effects and the net of tax amounts.

Defined benefit plan assets measured at fair value, observable and unobservable inputs

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


	December 31, 2020
	U.S. Plans										Non-U.S. Plans
Asset Class	Level 1		Level 2		Level 3		Assets measured at NAV(1)		Total		Level 1		Level 2		Level 3		Assets measured at NAV(1)		Total
Cash and cash equivalents	$	17	$	—	$	—	$	—	$	17	$	401	$	—	$	—	$	—	$	401
Equity Securities:
U.S.	224		—		—		39		263		178		56		—		—		234
International	243		—		—		204		447		559		321		—		151		1,031
Fixed Income Securities:
U.S. treasury securities	—		325		—		—		325		—		77		—		—		77
Debt security issued by government agency	—		78		—		—		78		—		2,026		—		—		2,026
Corporate bonds	—		1,252		—		—		1,252		—		921		—		—		921

Derivatives	—		11		—		—		11		—		488		—		—		488
Real estate	—		—		31		10		41		—		—		208		108		316
Private equity/venture capital	—		—		—		209		209		—		—		3		1,557		1,560
Guaranteed insurance contracts	—		—		—		—		—		—		—		86		—		86
Other(2)(3)	7		—		—		152		159		21		38		—		—		59
Total Fair Value of Plan Assets	$	491	$	1,666	$	31	$	614	$	2,802	$	1,159	$	3,927	$	297	$	1,816	$	7,199

_____________

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

(2)Other NAV includes mutual funds of $73 (measured at NAV) which are invested approximately 70% in fixed income securities and approximately 30% in equity securities.

(3)Other Level 1 includes net non-financial assets of $7 U.S. and $21 Non-U.S., respectively, such as due to/from broker, interest receivables and accrued expenses.


	December 31, 2019
	U.S. Plans										Non-U.S. Plans
Asset Class	Level 1		Level 2		Level 3		Assets measured at NAV(1)		Total		Level 1		Level 2		Level 3		Assets measured at NAV(1)		Total
Cash and cash equivalents	$	9	$	—	$	—	$	—	$	9	$	421	$	—	$	—	$	—	$	421
Equity Securities:
U.S.	182		—		—		39		221		132		52		—		—		184
International	193		—		—		191		384		462		302		—		118		882
Fixed Income Securities:
U.S. treasury securities	—		316		—		—		316		—		47		—		—		47
Debt security issued by government agency	—		67		—		—		67		—		1,825		—		—		1,825
Corporate bonds	—		1,119		—		—		1,119		—		841		—		—		841

Derivatives	—		45		—		—		45		—		186		—		—		186
Real estate	—		—		5		10		15		—		—		219		116		335
Private equity/venture capital	—		—		—		199		199		—		—		5		1,527		1,532
Guaranteed insurance contracts	—		—		—		—		—		—		—		90		—		90
Other(2)(3)	(36)		—		—		154		118		11		31		—		—		42
Total Fair Value of Plan Assets	$	348	$	1,547	$	5	$	593	$	2,493	$	1,026	$	3,284	$	314	$	1,761	$	6,385

_____________

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

(2)Other NAV includes mutual funds of $76 (measured at NAV) which are invested approximately 75% in fixed income securities and approximately 25% in equity securities.

(3)Other Level 1 includes net non-financial (liabilities) assets of $(36) U.S. and $11 Non-U.S., respectively, such as due to/from broker, interest receivables and accrued expenses.

Schedule of fair value, assets measured on recurring basis, unobservable input reconciliation

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


	U.S.		Non-U.S.
	Real Estate		Real Estate		Private Equity/Venture Capital		Guaranteed Insurance Contracts		Total
Balance at December 31, 2018	$	—	$	210	$	6	$	92	$	308
Purchases	5		—		—		2		2



Sales	—		—		(5)		(4)		(9)

Unrealized gains	—		9		4		2		15
Currency translation	—		—		—		(2)		(2)

Balance at December 31, 2019	$	5	$	219	$	5	$	90	$	314
Purchases	27		—		3		—		3

Sales	—		(15)		—		(4)		(19)



Unrealized losses	(1)		(8)		(4)		(8)		(20)
Currency translation	—		12		(1)		8		19

Balance at December 31, 2020	$	31	$	208	$	3	$	86	$	297

Schedule of allocation of plan assets

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


	2020		2019
	U.S.	Non-U.S.	U.S.	Non-U.S.
Equity investments	23%	15%	23%	14%
Fixed income investments	61%	44%	61%	46%
Real estate	6%	4%	6%	5%
Private equity/venture capital	8%	22%	8%	24%
Other	2%	15%	2%	11%
Total Investment Strategy	100%	100%	100%	100%

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.


	Year Ended December 31,
	2020		Estimated 2021
U.S. Plans	$	35	$	25
Non-U.S. Plans	104		105
Total	$	139	$	130

Retiree Health	$	25	$	30

Schedule of expected benefit payments

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


	Pension Benefits
	U.S.		Non-U.S.		Total		Retiree Health
2021	$	360	$	289	$	649	$	30
2022	288		294		582		29
2023	285		301		586		28
2024	280		306		586		26
2025	274		312		586		25
Years 2026-2030	1,214		1,647		2,861		107

Schedule of assumptions used

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


	Pension Benefits
	2020				2019				2018
	U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.
Discount rate	2.2	%	1.3	%	3.1	%	1.8	%	4.2	%	2.6	%
Rate of compensation increase	0.1	%	2.6	%	0.2	%	2.6	%	0.2	%	2.6	%
Interest crediting rate	2.8	%	1.5	%	2.8	%	1.5	%	2.8	%	1.5	%


	Retiree Health
	2020		2019		2018
Discount rate	2.2	%	3.0	%	4.1	%

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


	Pension Benefits
	2021				2020				2019				2018
	U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.
Discount rate	2.2	%	1.3	%	3.1	%	1.8	%	4.2	%	2.6	%	3.6	%	2.3	%
Expected return on plan assets	5.9	%	3.1	%	6.0	%	3.3	%	6.0	%	4.0	%	5.8	%	3.8	%
Rate of compensation increase	0.1	%	2.6	%	0.2	%	2.6	%	0.2	%	2.6	%	0.2	%	2.6	%
Interest crediting rate	2.8	%	1.5	%	2.8	%	1.5	%	2.8	%	1.5	%	2.8	%	1.5	%


	Retiree Health
	2021		2020		2019		2018
Discount rate	2.2	%	3.0	%	4.1	%	3.5	%

_____________

Schedule of health care cost trend rates

Assumed health care cost trend rates were as follows:


	December 31,
	2020		2019
Health care cost trend rate assumed for next year	5.7	%	6.0	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)	4.3	%	4.3	%
Year that the rate reaches the ultimate trend rate	2025		2026

Income and Other Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of income before income tax, domestic and foreign

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


	Year Ended December 31,
	2020		2019		2018
Domestic income	$	353	$	679	$	331
Foreign (loss) income	(101)		143		218
Income before Income Taxes and Equity Income	$	252	$	822	$	549

Schedule of components of income tax expense (benefit)

The components of Income tax expense from continuing operations were as follows:


	Year Ended December 31,
	2020		2019		2018
Federal Income Taxes
Current	$	3	$	(3)	$	37
Deferred	58		98		83
Foreign Income Taxes
Current	19		43		46
Deferred	(34)		5		57
State Income Taxes
Current	8		15		29
Deferred	10		21		(5)
Income Tax Expense	$	64	$	179	$	247

Schedule of effective income tax rate reconciliation

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


	Year Ended December 31,
	2020		2019		2018
U.S. federal statutory income tax rate	21.0	%	21.0	%	21.0	%
Nondeductible expenses	4.1	%	1.3	%	3.7	%
Effect of tax law changes	(10.5)	%	(4.6)	%	14.5	%
Change in valuation allowance for deferred tax assets	9.9	%	2.0	%	0.6	%
State taxes, net of federal benefit	5.5	%	3.5	%	2.3	%
Audit and other tax return adjustments	1.4	%	0.6	%	(1.8)	%
Tax-exempt income, credits and incentives	(5.9)	%	(2.1)	%	(2.2)	%
Foreign rate differential adjusted for U.S. taxation of foreign profits(1)	(2.6)	%	0.1	%	4.8	%
Stock-based compensation	2.3	%	(0.3)	%	0.2	%
Other	0.2	%	0.3	%	1.9	%
Effective Income Tax Rate	25.4	%	21.8	%	45.0	%

_____________

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

Schedule of allocation of income tax expense (benefit)

Total income tax expense (benefit) was allocated to the following items:


	Year Ended December 31,
	2020		2019		2018
Pre-tax income	$	64	$	179	$	247
Discontinued operations(1)	—		95		10


Common shareholders' equity:
Changes in defined benefit plans	43		(55)		131

Cash flow hedges	1		(1)		5
Translation adjustments	(3)		8		(9)
Retained Earnings	—		—		36
Total Income Tax Expense	$	105	$	226	$	420

_____________

(1)Refer to Note 6 - Divestitures for additional information regarding discontinued operations.

Schedule of unrecognized tax benefits rollforward

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


	2020		2019		2018
Balance at January 1	$	127	$	108	$	125
Additions related to current year	3		42		2
Additions related to prior years positions	8		17		3
Reductions related to prior years positions	(10)		(36)		(13)
Settlements with taxing authorities(1)	(8)		(1)		(6)
Reductions related to lapse of statute of limitations	(7)		(3)		(3)
Currency	2		—		—

Balance at December 31	$	115	$	127	$	108

_____________

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

Schedule of deferred tax assets and liabilities

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


	December 31,
	2020		2019(2)
Deferred Tax Assets
Research and development	$	150	$	143
Post-retirement medical benefits	94		98

Net operating losses	377		389
Operating reserves, accruals and deferrals	124		115
Tax credit carryforwards	249		231
Deferred and share-based compensation	13		26
Pension	211		298
Depreciation	35		16
Operating lease liabilities	82		84
Other	44		63
Subtotal	1,379		1,463
Valuation allowance	(396)		(399)
Total	$	983	$	1,064

Deferred Tax Liabilities
Finance lease and installment sales	$	247	$	240

Intangibles and goodwill	140		128
Unremitted earnings of foreign subsidiaries	31		39
Operating lease ROU assets	76		78
Other	16		18
Total	$	510	$	503

Total Deferred Taxes, Net	$	473	$	561

Reconciliation to the Consolidated Balance Sheets
Deferred tax assets	$	508	$	598
Deferred tax liabilities(1)	(35)		(37)
Total Deferred Taxes, Net	$	473	$	561

_____________

(1)Represents the deferred tax liabilities recorded in Other long-term liabilities - refer to Note 15 - Supplementary Financial Information.

Contingencies and Litigation (Tables)

12 Months Ended

Dec. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Schedule of loss contingencies by contingency

Below is a summary of our Brazilian tax contingencies:


	December 31, 2020		December 31, 2019
Tax contingency - unreserved	$	355	$	442
Escrow cash deposits	39		51
Surety bonds	112		135
Letters of credit	78		91
Liens on Brazilian assets	—		—

- Definition

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

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
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+ Details

Shareholders' Equity (Tables)

12 Months Ended

Dec. 31, 2020

Stockholders' Equity Note [Abstract]

Schedule of treasury stock by class

The following provides cumulative information relating to Xerox Holdings' share repurchase program from its inception through December 31, 2020 (shares in thousands):


Authorized share repurchase program	$	1,000
Share repurchase cost	$	600
Share repurchase fees	$	—
Number of shares repurchased	24,691

Schedule of common and treasury stock changes


	Common Stock Shares	Treasury Stock Shares
Balance at December 31, 2017	254,613	—
Stock based compensation plans, net	1,103	—

Acquisition of Treasury stock	—	26,093
Cancellation of Treasury stock	(24,026)	(24,026)

Balance at December 31, 2018	231,690	2,067
Stock based compensation plans, net	1,310	—

Acquisition of Treasury stock	—	18,343
Cancellation of Treasury stock	(18,379)	(18,379)


Balance at December 31, 2019	214,621	2,031
Stock based compensation plans, net	1,390	—
Acquisition of Treasury stock	—	15,594
Cancellation of Treasury stock	(17,625)	(17,625)

Balance at December 31, 2020	198,386	—

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

Schedule of stock-based compensation expense, tax effect

Stock-based compensation expense was as follows:


	Year Ended December 31,
	2020		2019		2018
Stock-based compensation expense, pre-tax	$	42	$	50	$	57
Income tax benefit recognized in earnings	11		13		14

Schedule of stock-based payment award valuation assumptions, performance shares, market-based component table

A summary of Xerox Holdings key valuation input assumptions used in the Monte Carlo simulation relative to the 2020, 2019 and 2018 PSU awards granted were as follows:


	2020 Award			2019 Award			2018 Award
Term	3 years			3 years			3 years
Risk-free interest rate(1)	1.60		%	2.51		%	2.39		%
Dividend yield(2)	2.80		%	3.97		%	3.24		%
Volatility(3)	29.49		%	32.95		%	29.12		%
Weighted average fair value(4)	$	41.28		$	16.27		$	32.01

____________

(1)The risk-free interest rate was based on the zero-coupon U.S. Treasury yield curve on the valuation date, with a maturity matched to the performance period.

(2)The dividend yield was calculated as the expected quarterly dividend divided by our three-month average stock price as of the valuation date, annualized and continuously compounded.

(3)Volatility is derived from historical stock prices as well as implied volatility when appropriate and available.

(4)The weighted-average of fair values used to record compensation expense as determined by the Monte Carlo simulation.

TSR payout as a percentage, comparison to peer group

Our Absolute Share Price metric is compared against total return targets to determine the payout as follows:


Payout as a Percent of Target	2020 Total Return Targets(1)	2019 Total Return Targets(1)
200%	$45.00 and above	$40.00 and above
100%	$40.00	$35.00
50%	$37.00	$30.00
0%	Below $37.00	Below $30.00

Our 2018 TSR metric compared to the peer group TSR will determine the payout as follows:


Payout as a Percent of Target						Percentile(1)
200%						80th and above
100%						50th
35%						25th
0%						Below 25th

____________

(1)For performance between the levels described above, the degree of vesting is interpolated on a linear basis.

Schedule of share-based payment award, stock options, valuation assumptions

Xerox Holdings weighted average assumptions used in the BS option-pricing model relative to SO awards were as follows:


	2018 Award
Expected term(1)	6.13 years
Expected volatility(2)	27.25	%
Expected dividend yield(3)	3.25	%
Risk-free interest rate(4)	2.63	%
Weighted average fair value(5)	$5.71

____________

(2)The expected volatility was calculated based on a combination of term-matched historical volatility and implied volatility from traded options.

(3)The dividend yield was calculated as the expected quarterly dividend divided by our three-month average stock price as of the grant date.

(4)The risk-free interest rate was based on the zero-coupon U.S. Treasury yield curve with a maturity matched to the expected term of the SOs.

(5)The weighted average of fair values used to record compensation expense as determined by the BS option-pricing model.

Schedule of share-based compensation arrangements by share-based payment award

Summary of Stock-based Compensation Activity


	2020			2019			2018
	Shares	Weighted Average Grant Date Fair Value(1)		Shares	Weighted Average Grant Date Fair Value(1)		Shares	Weighted Average Grant Date Fair Value(1)
Restricted Stock Units (2)
Outstanding at January 1	2,845	$	26.87	3,559	$	29.51	2,856	$	30.65
Granted	2,028	27.85		1,366	23.22		1,595	27.82
Vested	(1,473)	28.85		(1,666)	29.28		(214)	30.39
Forfeited	(213)	28.39		(414)	27.85		(678)	30.04


Outstanding at December 31	3,187	26.48		2,845	26.87		3,559	29.51
Performance Shares
Outstanding at January 1	2,830	$	24.99	2,462	$	29.83	3,117	$	31.54
Granted	901	37.59		1,433	19.46		1,060	27.36
Vested	(993)	31.94		(633)	29.56		(853)	32.59
Forfeited/Expired	(313)	26.22		(432)	27.50		(862)	30.26


Outstanding at December 31	2,425	26.67		2,830	24.99		2,462	29.83
Stock Options
Outstanding at January 1	861	$	27.83	1,022	$	27.84	—	$	—
Granted	—	—		—	—		1,414	27.88
Forfeited/Expired	(60)	27.98		(92)	27.92		(392)	27.98
Exercised	(2)	27.98		(69)	27.98		—	—

Outstanding at December 31	799	27.81		861	27.83		1,022	27.84
Exercisable at December 31	470	27.84		233	27.83		39	27.98

____________

(1)Weighted average exercise price for stock options.

(2)Includes a 2018 Restricted Stock Award (RSA) grant of 351 shares with a corresponding grant date fair value of $28.51, which vested in 2019.

Schedule of unrecognized compensation cost, nonvested awards

Unrecognized compensation cost related to non-vested stock-based awards at December 31, 2020 was as follows:


Awards	Unrecognized Compensation		Remaining Weighted-Average Vesting Period (Years)
Restricted Stock Units	$	51	1.0
Performance Shares	13		1.1

Total	$	64

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

The aggregate intrinsic value of outstanding stock-based awards was as follows:


Awards	December 31, 2020
Restricted Stock Units	$	74
Performance Shares	56
Stock Options(1)	—

____________

(1)Strike price greater than Xerox Holdings Corporation Stock price at December 31, 2020, therefore, intrinsic value considered to be $0.

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

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


	December 31, 2020						December 31, 2019						December 31, 2018
Awards	Total Intrinsic Value		Cash Received		Tax Benefit		Total Intrinsic Value(1)		Cash Received		Tax Benefit		Total Intrinsic Value		Cash Received		Tax Benefit
Restricted Stock Units	$	33	$	—	$	5	$	55	$	—	$	11	$	6	$	—	$	2
Performance Share Units	18		—		4		23		—		6		21		—		4
Stock Options	—		—		—		1		2		—		—		—		—

____________

(1)RSUs include a RSA grant of 351 shares, which vested in 2019.

Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2020

Other Comprehensive Income [Abstract]

Schedule of amounts recognized in other comprehensive income (loss)

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


	Year Ended December 31,
	2020				2019				2018
	Pre-tax		Net of Tax		Pre-tax		Net of Tax		Pre-tax		Net of Tax
Translation Adjustments Gains (Losses)
Aggregate adjustment in period	$	238	$	241	$	53	$	45	$	(251)	$	(242)
Divestiture - reclassification	—		—		17		17		—		—
Net Translation Adjustments Gains (Losses)	238		241		70		62		(251)		(242)

Unrealized Gains (Losses)
Changes in fair value of cash flow hedges gains	4		3		2		1		9		8
Changes in cash flow hedges reclassed to earnings(1)	1		1		(9)		(7)		14		10
Other losses	—		—		—		—		(2)		(2)
Net Unrealized Gains (Losses)	5		4		(7)		(6)		21		16

Defined Benefit Plans Gains (Losses)
Net actuarial/prior service gains (losses)	117		86		(275)		(202)		273		198
Prior service amortization/curtailment(2)	(80)		(60)		(81)		(61)		(26)		(20)
Actuarial loss amortization/settlement(2)	138		104		156		118		252		190
Fuji Xerox changes in defined benefit plans, net(3)	—		—		8		8		(25)		(25)
Other (losses) gains(4)	(63)		(61)		(21)		(21)		66		66
Divestiture - reclassification	—		—		148		148		—		—
Changes in Defined Benefit Plans Gains (Losses)	112		69		(65)		(10)		540		409



Other Comprehensive Income (Loss) Attributable to Xerox Holdings/Xerox	$	355	$	314	$	(2)	$	46	$	310	$	183

_____________

(1)Reclassified to Cost of sales - refer to Note 17 - Financial Instruments for additional information regarding our cash flow hedges.

(2)Reclassified to Total Net Periodic Benefit Cost - refer to Note 19 - Employee Benefit Plans for additional information.

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

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

Schedule of accumulated other comprehensive loss

AOCL is comprised of the following:


	December 31,
	2020		2019		2018
Cumulative translation adjustments	$	(1,720)	$	(1,961)	$	(2,023)
Other unrealized gains (losses), net	2		(2)		4
Benefit plans net actuarial losses and prior service credits(1)(2)	(1,614)		(1,683)		(1,546)
Total Accumulated Other Comprehensive Loss Attributable to Xerox Holdings/Xerox	$	(3,332)	$	(3,646)	$	(3,565)

_____________

(1)Amounts prior to 2019 include our share of Fuji Xerox balances.

Earnings per Share (Tables)

12 Months Ended

Dec. 31, 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 Xerox Holdings Corporation's common stock (shares in thousands):


	Year Ended December 31,
	2020		2019		2018
Basic Earnings per Share:
Net Income from continuing operations attributable to Xerox Holdings	$	192	$	648	$	306
Accrued dividends on preferred stock	(14)		(14)		(14)
Adjusted Net income from continuing operations available to common shareholders	178		634		292
Income from discontinued operations attributable to Xerox Holdings, net of tax	—		705		55
Adjusted Net income available to common shareholders	$	178	$	1,339	$	347
Weighted average common shares outstanding	208,983		221,969		248,707
Basic Earnings per Share:
Continuing operations	$	0.85	$	2.86	$	1.17
Discontinued operations	—		3.17		0.23
Basic Earnings per Share	$	0.85	$	6.03	$	1.40

Diluted Earnings per Share:
Net Income from continuing operations attributable to Xerox Holdings	$	192	$	648	$	306
Accrued dividends on preferred stock	(14)		—		(14)

Adjusted Net income from continuing operations available to common shareholders	178		648		292
Income from discontinued operations attributable to Xerox Holdings, net of tax	—		705		55
Adjusted Net income available to common shareholders	$	178	$	1,353	$	347
Weighted average common shares outstanding	208,983		221,969		248,707
Common shares issuable with respect to:
Stock options	15		55		—
Restricted stock and performance shares	2,439		4,403		2,953
Convertible preferred stock	—		6,742		—

Adjusted Weighted average common shares outstanding	211,437		233,169		251,660

Diluted Earnings per Share:
Continuing operations	$	0.84	$	2.78	$	1.16
Discontinued operations	—		3.02		0.22
Diluted Earnings per Share	$	0.84	$	5.80	$	1.38

The following securities were not included in the computation of diluted earnings per share as they were either contingently issuable shares or shares that if included would have been anti-dilutive (shares in thousands):
Stock options	784		805		1,022
Restricted stock and performance shares	3,173		1,272		3,068
Convertible preferred stock	6,742		—		6,742

Total Anti-Dilutive Securities	10,699		2,077		10,832

Dividends per Common Share	$	1.00	$	1.00	$	1.00

Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) £ in Millions, $ in Millions			9 Months Ended	12 Months Ended
	Jan. 01, 2019 USD ($)	Jan. 01, 2018 USD ($)	Sep. 30, 2020 USD ($)	Dec. 31, 2020 USD ($) country service_offering	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Nov. 30, 2019	Sep. 30, 2018 USD ($)	Sep. 30, 2018 GBP (£)
Product Information [Line Items]
Number of countries in which entity operates \| country				160
Lessor - lease payment deferral period			3 months
Lessor - Lease amount deferred			$ 33
Lessor - Maximum percentage deferred			1.00%
Retained earnings				$ 6,281	$ 6,312
Number of reportable segments \| service_offering				1
Number of reporting units \| service_offering				1
Expected return on plan assets period				2 years
Sustaining engineering costs				$ 54	62	$ 72
Xerox Holdings Corporation \| CareAR
Product Information [Line Items]
Direct subsidiary acquisition cost				$ 9
Discontinued Operations, Disposed of by Sale \| Fuji Xerox Co., Ltd.
Product Information [Line Items]
Ownership percentage (percent)							25.00%
Discontinued Operations, Disposed of by Sale \| Xerox International Partners
Product Information [Line Items]
Ownership percentage (percent)							51.00%
Accounting Standards Update 2016-02
Product Information [Line Items]
Lessee accounting, increase to leased assets and liabilities					385
Lessee accounting, increase to leased assets and liabilities, undiscounted					440
Lessor accounting - increase to equipment sales					$ 30
Accounting Standards Update 2014-09
Product Information [Line Items]
Transition asset		$ 153
Accounting Standards Update 2014-09 \| Cumulative Effect, Period of Adoption, Adjustment
Product Information [Line Items]
Retained earnings		$ 117
United Kingdom, Pounds
Product Information [Line Items]
Out-of-period adjustment, gross \| £									£ 40
United States of America, Dollars
Product Information [Line Items]
Out-of-period adjustment, gross								$ (53)
Out-of-period adjustment, net								$ 43
Minimum
Product Information [Line Items]
Ownership percentage (percent)				20.00%
Maximum
Product Information [Line Items]
Ownership percentage (percent)				50.00%
Retained Earnings \| Accounting Standards Update 2018-02 \| Cumulative Effect, Period of Adoption, Adjustment
Product Information [Line Items]
Tax cuts and jobs act, reclassification from AOCI to retained earnings, tax effect	$ 127

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Disaggregation of Revenue [Line Items]
Total Revenues	$ 7,022	$ 9,066	$ 9,662
Equipment
Disaggregation of Revenue [Line Items]
Total Revenues	1,564	2,062	2,178
Supplies, paper and other sales
Disaggregation of Revenue [Line Items]
Total Revenues	885	1,165	1,276
Maintenance agreements
Disaggregation of Revenue [Line Items]
Total Revenues	1,803	2,372	2,603
Service arrangements
Disaggregation of Revenue [Line Items]
Total Revenues	2,014	2,517	2,674
Rental and other
Disaggregation of Revenue [Line Items]
Total Revenues	530	706	663
Financing
Disaggregation of Revenue [Line Items]
Total Revenues	226	244	268
Sales
Disaggregation of Revenue [Line Items]
Total Revenues	2,449	3,227	3,454
Sales \| Sales channels, direct equipment lease
Disaggregation of Revenue [Line Items]
Total Revenues	573	672	699
Sales \| Sales channels, distributors and resellers
Disaggregation of Revenue [Line Items]
Total Revenues	910	1,343	1,445
Sales \| Customer direct
Disaggregation of Revenue [Line Items]
Total Revenues	966	1,212	1,310
United States
Disaggregation of Revenue [Line Items]
Total Revenues	4,186	5,429	5,610
Europe
Disaggregation of Revenue [Line Items]
Total Revenues	1,883	2,326	2,625
Canada
Disaggregation of Revenue [Line Items]
Total Revenues	393	518	569
Other
Disaggregation of Revenue [Line Items]
Total Revenues	$ 560	$ 793	$ 858

Revenue - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contract liabilities	$ 130	$ 137
Contract liability amortization period (months)	30 months
Deferred incremental direct costs, amortization period (years)	4 years
Customer contract costs, net	$ 145	163
Amortization period of incremental direct costs of obtaining a contract (years)	4 years
Contract Fulfillment Costs and Inducements
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Capitalized contract costs, deferred	$ 13	13
Amortization of capitalized contract fulfillment and inducement costs	$ 4	$ 5	$ 5

Revenue - Contract Costs (Details) - USD ($) $ in Millions	12 Months Ended
Revenue - Contract Costs (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Revenue from Contract with Customer [Abstract]
Incremental direct costs of obtaining a contract	$ 62	$ 78	$ 84
Amortization of incremental direct costs	$ 81	$ 88	$ 95

Segment and Geographic Area Reporting - Revenue and Long-lived Assets by Geography (Details) $ in Millions	12 Months Ended
	Dec. 31, 2020 USD ($) service_offering	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments \| service_offering	1
Revenues	$ 7,022	$ 9,066	$ 9,662
Long-Lived Assets	1,131	1,231
United States
Segment Reporting Information [Line Items]
Revenues	4,186	5,429	5,610
Long-Lived Assets	692	769
Europe
Segment Reporting Information [Line Items]
Revenues	1,883	2,326	2,625
Long-Lived Assets	312	305
Canada
Segment Reporting Information [Line Items]
Revenues	393	518	569
Long-Lived Assets	84	98
Other areas
Segment Reporting Information [Line Items]
Revenues	560	793	$ 858
Long-Lived Assets	$ 43	$ 59

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Lessor - Components of Lease Income (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Leases [Abstract]
Economic life of leased product	5 years
Revenue from sales type leases	$ 573	$ 672
Revenue from sales type leases			$ 699
Interest income on lease receivables	226	244
Interest income on lease receivables			268
Lease income - operating leases	313	396
Lease income - operating leases			438
Variable lease income	66	107
Variable lease income			120
Total Lease income	1,178	1,419
Total Lease income			1,525
Profit at lease commencement, sales type leases	$ 207	$ 276
Profit at lease commencement, sales type leases			$ 302

Acquisitions (Details) £ in Millions, $ in Millions	12 Months Ended
Acquisitions (Details) £ in Millions, $ in Millions	Dec. 31, 2020 USD ($) acquisition	Dec. 31, 2020 GBP (£) acquisition	Dec. 31, 2020 CAD ($) acquisition	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Schedule of Business Acquisitions, by Acquisition [Line Items]
Acquisition	$ 194,000,000
Payments to acquire business	$ 203,000,000			$ 42,000,000	$ 0
U.K. Acquisitions
Schedule of Business Acquisitions, by Acquisition [Line Items]
Number of businesses acquired \| acquisition	3	3	3
Acquisition	$ 172,000,000	£ 133
Digitex Canada
Schedule of Business Acquisitions, by Acquisition [Line Items]
Acquisition	22,000,000		$ 29
2020 Acquisitions
Schedule of Business Acquisitions, by Acquisition [Line Items]
Acquisition	$ 9,000,000
Percentage of business acquired	100.00%	100.00%	100.00%
Amount expected to be deductible for tax purposes	$ 0
Revenue of acquiree since date of acquisition	99,000,000
ROA and HBS
Schedule of Business Acquisitions, by Acquisition [Line Items]
Payments to acquire business				38,000,000
2019 Acquisitions
Schedule of Business Acquisitions, by Acquisition [Line Items]
Acquisition				4,000,000
Revenue of acquiree since date of acquisition	21,000,000			$ 18,000,000
2018 Acquisitions
Schedule of Business Acquisitions, by Acquisition [Line Items]
Payments to acquire business					$ 0
HP Inc. \| Bridge Loan
Schedule of Business Acquisitions, by Acquisition [Line Items]
Amount committed by lender	$ 24,000,000,000

Acquisitions - Schedule of Acquisitions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Business Acquisition [Line Items]
Goodwill	$ 4,071	$ 3,900	$ 3,858	$ 3,921
2020 Acquisitions
Business Acquisition [Line Items]
Accounts/finance receivables	20
Goodwill	111
Other assets	44
Total Assets acquired	262
Liabilities assumed	(59)
Total Purchase Price	$ 203
Customer relationships \| 2020 Acquisitions
Business Acquisition [Line Items]
Intangible assets, weighted average life (years)	9 years
Intangible assets	$ 69
Trademarks \| 2020 Acquisitions
Business Acquisition [Line Items]
Intangible assets, weighted average life (years)	9 years
Intangible assets	$ 9
Technology \| 2020 Acquisitions
Business Acquisition [Line Items]
Intangible assets, weighted average life (years)	3 years
Intangible assets	$ 9

Divestitures - Narrative (Details) - USD ($)	1 Months Ended	12 Months Ended
Divestitures - Narrative (Details) - USD ($)	Nov. 30, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain (loss) reclassified from AOCL		$ 0	$ 17,000,000	$ 0
Goodwill		$ 4,071,000,000	3,900,000,000	$ 3,858,000,000	$ 3,921,000,000
Fuji Xerox Co., Ltd.
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
License fee received	$ 77,000,000
Discontinued Operations, Disposed of by Sale \| Fuji Xerox Co., Ltd.
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Ownership percentage (percent)	25.00%
Proceeds from sale of equity method investments	$ 2,200,000,000
Goodwill	$ 0
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 (percent)	51.00%
Proceeds from sale of equity method investments	$ 23,000,000
Goodwill	9,000,000
Discontinued Operations, Disposed of by Sale \| Fuji Xerox Co., Ltd. and Xerox International Partners, The Sales
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Realized gain (loss) on sale	629,000,000
Realized gain (loss) on sale, after tax	539,000,000
Gain (loss) reclassified from AOCL	165,000,000		$ 165,000,000
Transaction costs	$ 9,000,000

Divestitures - Discontinued Operation - Income Statement (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Discontinued Operations and Disposal Groups [Abstract]
Revenue	$ 0	$ 79	$ 168
Income from operations	0	176	74
Gain on disposal	0	629	0
Income before income taxes	0	805	74
Income tax expense	0	95	10
Income from discontinued operations, net of tax	0	710	64
Income from discontinued operations attributable to noncontrolling interests, net of tax	0	5	9
Income from discontinued operations, attributable to Xerox, net of tax	0	705	55
Cost of revenues	0	44	110
Other expenses	0	6	9
Total Costs and Expenses	0	50	119
Depreciation and amortization	0	0	0
Restructuring and related costs, net	0	0	1
Equity in net income of FX	0	147	25
Capital expenditures	$ 0	$ 0	$ 0

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

12 Months Ended

Dec. 31, 2020

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2020

Dec. 31, 2019

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

Accounts receivable, net

^[1]

$ 883

$ 1,236

Accounts receivable sold, derecognized and uncollected at balance sheet date

136

165

Accounts receivable sales

$ 333

$ 393

$ 405

Accounts Receivable, Allowance for Credit Loss [Roll Forward]

Provision

$ 116

$ 49

Credit Concentration Risk | Accounts Receivable

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

Concentration risk (percentage)

7.20%

4.30%

Accounts Receivable

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

Invoiced

735

980

Accrued

217

311

Allowance for doubtful accounts

$ (55)

$ (56)

(56)

$ (69)

$ (55)

Accounts Receivable, Allowance for Credit Loss [Roll Forward]

Balance at December 31

Provision

Charge-offs

(22)

(19)

Recoveries and other

Balance at December 31

$ 69

$ 55

$ 56

[1]	Allowances at December 31, 2020 determined in accordance with ASU 2016-13 adopted effective January 1, 2020. Refer to Notes 1, 7 and 8 for additional information.

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

Dec. 31, 2020

Dec. 31, 2019

Dec. 31, 2018

Receivables [Abstract]

Gross receivables

$ 3,691

$ 3,865

Unearned income

(393)

(425)

Subtotal

3,298

3,440

Residual values

Allowance for doubtful accounts

(133)

(89)

$ (92)

Finance Receivables, Net

3,165

3,351

Less: Billed portion of finance receivables, net

111

Less: Current portion of finance receivables not billed, net

1,082

1,158

Finance Receivables Due After One Year, Net

^[1]

1,984

2,082

12 Months

1,426

1,490

24 Months

1,006

1,052

36 Months

697

728

48 Months

395

422

60 Months

152

158

Thereafter

Total

$ 3,691

$ 3,865

[1]	Allowances at December 31, 2020 determined in accordance with ASU 2016-13 adopted effective January 1, 2020. Refer to Notes 1, 7 and 8 for additional information.

Finance Receivables, Net - Allowance for Credit Losses (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Financing Receivable, Allowance for Credit Loss [Line Items]
Finance receivable lease portfolio average maturity - low (years)	2 years
Finance receivable lease portfolio average maturity - high (years)	3 years
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for credit loss, beginning of period	$ 89	$ 92
Provision	81	28
Charge-offs	(42)	(34)
Recoveries and other	5	3
Allowance for credit loss, end of period	133	89
Finance Receivables Collectively Evaluated for Impairment	$ 3,298	$ 3,440
Credit Concentration Risk \| Finance Receivables
Financing Receivable, Allowance for Credit Loss [Line Items]
Concentration risk (percentage)	4.00%	2.60%
United States
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for credit loss, beginning of period	$ 59	$ 53
Provision	41	20
Charge-offs	(23)	(15)
Recoveries and other	0	1
Allowance for credit loss, end of period	77	59
Finance Receivables Collectively Evaluated for Impairment	1,823	1,922
Canada
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for credit loss, beginning of period	10	12
Provision	8	1
Charge-offs	(5)	(5)
Recoveries and other	2	2
Allowance for credit loss, end of period	15	10
Finance Receivables Collectively Evaluated for Impairment	297	326
Europe
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for credit loss, beginning of period	20	27
Provision	32	7
Charge-offs	(14)	(14)
Recoveries and other	3	0
Allowance for credit loss, end of period	41	20
Finance Receivables Collectively Evaluated for Impairment	$ 1,178	$ 1,192

Finance Receivables, Net - Finance Receivables Credit Quality Indicators (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Financing Receivable, Credit Quality Indicator [Line Items]
Loss rates of customers with low risk credit quality (percentage)	1.00%
Loss rates of customers with average credit risk credit quality, low range (percentage)	2.00%
Loss rates of customers with average credit risk credit quality, high range (percentage)	5.00%
Loss rates of customers with high credit risk credit quality, low range (percentage)	7.00%
Loss rates of customers with high credit risk credit quality, high range (percentage)	10.00%
2020	$ 1,140
2019	1,005
2018	680
2017	337
2016	116
Prior	20
Total Finance Receivables	3,298	$ 3,440
United States
Financing Receivable, Credit Quality Indicator [Line Items]
Total Finance Receivables	1,823	1,922
Canada
Financing Receivable, Credit Quality Indicator [Line Items]
2020	101
2019	83
2018	60
2017	37
2016	14
Prior	2
Total Finance Receivables	297	326
Europe
Financing Receivable, Credit Quality Indicator [Line Items]
2020	390
2019	361
2018	254
2017	123
2016	41
Prior	9
Total Finance Receivables	1,178	1,192
Low Credit Risk
Financing Receivable, Credit Quality Indicator [Line Items]
2020	591
2019	502
2018	362
2017	176
2016	64
Prior	9
Total Finance Receivables	1,704	1,716
Low Credit Risk \| Canada
Financing Receivable, Credit Quality Indicator [Line Items]
2020	37
2019	34
2018	24
2017	10
2016	5
Prior	1
Total Finance Receivables	111	163
Low Credit Risk \| Europe
Financing Receivable, Credit Quality Indicator [Line Items]
2020	197
2019	177
2018	131
2017	62
2016	20
Prior	4
Total Finance Receivables	591	655
Average Credit Risk
Financing Receivable, Credit Quality Indicator [Line Items]
2020	399
2019	418
2018	257
2017	125
2016	39
Prior	7
Total Finance Receivables	1,245	1,352
Average Credit Risk \| Canada
Financing Receivable, Credit Quality Indicator [Line Items]
2020	46
2019	39
2018	26
2017	17
2016	6
Prior	1
Total Finance Receivables	135	97
Average Credit Risk \| Europe
Financing Receivable, Credit Quality Indicator [Line Items]
2020	170
2019	160
2018	108
2017	51
2016	17
Prior	4
Total Finance Receivables	510	479
High Credit Risk
Financing Receivable, Credit Quality Indicator [Line Items]
2020	150
2019	85
2018	61
2017	36
2016	13
Prior	4
Total Finance Receivables	349	372
High Credit Risk \| Canada
Financing Receivable, Credit Quality Indicator [Line Items]
2020	18
2019	10
2018	10
2017	10
2016	3
Prior	0
Total Finance Receivables	51	66
High Credit Risk \| Europe
Financing Receivable, Credit Quality Indicator [Line Items]
2020	23
2019	24
2018	15
2017	10
2016	4
Prior	1
Total Finance Receivables	77	58
Direct
Financing Receivable, Credit Quality Indicator [Line Items]
Total Finance Receivables	967	1,103
Direct \| United States
Financing Receivable, Credit Quality Indicator [Line Items]
2020	308
2019	288
2018	207
2017	110
2016	45
Prior	9
Total Finance Receivables	967	1,103
Direct \| Low Credit Risk \| United States
Financing Receivable, Credit Quality Indicator [Line Items]
2020	164
2019	151
2018	128
2017	71
2016	32
Prior	4
Total Finance Receivables	550	640
Direct \| Average Credit Risk \| United States
Financing Receivable, Credit Quality Indicator [Line Items]
2020	54
2019	95
2018	52
2017	26
2016	8
Prior	2
Total Finance Receivables	237	331
Direct \| High Credit Risk \| United States
Financing Receivable, Credit Quality Indicator [Line Items]
2020	90
2019	42
2018	27
2017	13
2016	5
Prior	3
Total Finance Receivables	180	132
Indirect
Financing Receivable, Credit Quality Indicator [Line Items]
Total Finance Receivables	856	819
Indirect \| United States
Financing Receivable, Credit Quality Indicator [Line Items]
2020	341
2019	273
2018	159
2017	67
2016	16
Prior	0
Total Finance Receivables	856	819
Indirect \| Low Credit Risk \| United States
Financing Receivable, Credit Quality Indicator [Line Items]
2020	193
2019	140
2018	79
2017	33
2016	7
Prior	0
Total Finance Receivables	452	258
Indirect \| Average Credit Risk \| United States
Financing Receivable, Credit Quality Indicator [Line Items]
2020	129
2019	124
2018	71
2017	31
2016	8
Prior	0
Total Finance Receivables	363	445
Indirect \| High Credit Risk \| United States
Financing Receivable, Credit Quality Indicator [Line Items]
2020	19
2019	9
2018	9
2017	3
2016	1
Prior	0
Total Finance Receivables	$ 41	$ 116

Finance Receivables, Net - Finance Receivables Aging Schedule (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Financing Receivable, Past Due [Line Items]
Total Finance Receivables	$ 3,298	$ 3,440
Billed Revenues
Financing Receivable, Past Due [Line Items]
Total Finance Receivables	103	115
Unbilled
Financing Receivable, Past Due [Line Items]
Total Finance Receivables	3,195	3,325
United States
Financing Receivable, Past Due [Line Items]
Total Finance Receivables	1,823	1,922
United States \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total Finance Receivables	76	89
United States \| Unbilled
Financing Receivable, Past Due [Line Items]
Total Finance Receivables	1,747	1,833
Canada
Financing Receivable, Past Due [Line Items]
Total Finance Receivables	297	326
Canada \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total Finance Receivables	10	11
Canada \| Unbilled
Financing Receivable, Past Due [Line Items]
Total Finance Receivables	287	315
Total Europe
Financing Receivable, Past Due [Line Items]
Total Finance Receivables	1,178	1,192
Total Europe \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total Finance Receivables	17	15
Total Europe \| Unbilled
Financing Receivable, Past Due [Line Items]
Total Finance Receivables	1,161	1,177
Current \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total Finance Receivables	74	82
Current \| United States \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total Finance Receivables	54	62
Current \| Canada \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total Finance Receivables	8	8
Current \| Total Europe \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total Finance Receivables	12	12
31-90 Days Past Due \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total Finance Receivables	15	19
31-90 Days Past Due \| United States \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total Finance Receivables	10	16
31-90 Days Past Due \| Canada \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total Finance Receivables	2	2
31-90 Days Past Due \| Total Europe \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total Finance Receivables	3	1
>90 Days Past Due \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total Finance Receivables	14	14
>90 Days Past Due \| United States \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total Finance Receivables	12	11
>90 Days Past Due \| Canada \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total Finance Receivables	0	1
>90 Days Past Due \| Total Europe \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total Finance Receivables	2	2
>90 Days and Accruing
Financing Receivable, Past Due [Line Items]
Financing Receivable, 90 Days or More Past Due, Still Accruing	109	106
>90 Days and Accruing \| United States
Financing Receivable, Past Due [Line Items]
Financing Receivable, 90 Days or More Past Due, Still Accruing	74	57
>90 Days and Accruing \| Canada
Financing Receivable, Past Due [Line Items]
Financing Receivable, 90 Days or More Past Due, Still Accruing	12	17
>90 Days and Accruing \| Total Europe
Financing Receivable, Past Due [Line Items]
Financing Receivable, 90 Days or More Past Due, Still Accruing	23	32
Direct
Financing Receivable, Past Due [Line Items]
Total Finance Receivables	967	1,103
Direct \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total Finance Receivables	48	56
Direct \| Unbilled
Financing Receivable, Past Due [Line Items]
Total Finance Receivables	919	1,047
Direct \| United States
Financing Receivable, Past Due [Line Items]
Total Finance Receivables	967	1,103
Direct \| Current \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total Finance Receivables	33	37
Direct \| 31-90 Days Past Due \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total Finance Receivables	6	11
Direct \| >90 Days Past Due \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total Finance Receivables	9	8
Direct \| >90 Days and Accruing
Financing Receivable, Past Due [Line Items]
Financing Receivable, 90 Days or More Past Due, Still Accruing	74	57
Indirect
Financing Receivable, Past Due [Line Items]
Total Finance Receivables	856	819
Indirect \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total Finance Receivables	28	33
Indirect \| Unbilled
Financing Receivable, Past Due [Line Items]
Total Finance Receivables	828	786
Indirect \| United States
Financing Receivable, Past Due [Line Items]
Total Finance Receivables	856	819
Indirect \| Current \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total Finance Receivables	21	25
Indirect \| 31-90 Days Past Due \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total Finance Receivables	4	5
Indirect \| >90 Days Past Due \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total Finance Receivables	3	3
Indirect \| >90 Days and Accruing
Financing Receivable, Past Due [Line Items]
Financing Receivable, 90 Days or More Past Due, Still Accruing	$ 0	$ 0

Finance Receivables, Net - Secured Borrowings and Collateral (Details) - USD ($) $ in Millions	Dec. 31, 2020	Jul. 31, 2020	Dec. 31, 2019
Financing Receivable, Allowance for Credit Loss [Line Items]
Finance receivables, net	$ 3,165		$ 3,351
Special Purpose Entity (SPE) \| Secured Borrowing - July 2020
Financing Receivable, Allowance for Credit Loss [Line Items]
Finance receivables, net	286
Special Purpose Entity (SPE) \| Secured Borrowing - December 2020
Financing Receivable, Allowance for Credit Loss [Line Items]
Finance receivables, net	602
Special Purpose Entity (SPE)
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivables sold	$ 610	$ 355

Inventories and Equipment on Operating Leases, Net (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Jul. 31, 2020
Inventories, net [Abstract]
Finished goods	$ 707	$ 576
Work-in-process	43	47
Raw materials	93	71
Total Inventories	843	694
Property Subject to or Available for Operating Lease [Line Items]
Contingent rental revenue on operating leases	66	107	$ 120
Operating Leases, Future Minimum Payments Receivable [Abstract]
12 months	215	226
24 months	129	139
36 months	74	84
48 months	32	39
60 months	12	12
Thereafter	1	2
Total	463	$ 502
Special Purpose Entity (SPE)
Property Subject to or Available for Operating Lease [Line Items]
Net book value of rights to payments under operating leases sold				$ 10
Special Purpose Entity (SPE)
Property Subject to or Available for Operating Lease [Line Items]
Equipment on operating leases, net	$ 8
Minimum
Property Subject to or Available for Operating Lease [Line Items]
Equipment on operating lease depreciable lives	3 years
Maximum
Property Subject to or Available for Operating Lease [Line Items]
Equipment on operating lease depreciable lives	5 years

Inventories and Equipment on Operating Leases, Net - Equipment on Operating Leases and Accumulated Depreciation (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Equipment on operating leases	$ 1,376	$ 1,443
Accumulated depreciation	(1,080)	(1,079)
Equipment on operating leases, net	$ 296	$ 364

Land, Buildings, Equipment and Software, Net (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Land, Building and Equipment, net [Line Items]
Subtotal	$ 2,638	$ 2,698
Accumulated depreciation	(2,231)	(2,272)
Land, buildings and equipment, net	407	426
Depreciation expense	87	101	$ 148
Finance lease, right-of-use asset	10	7
Land
Land, Building and Equipment, net [Line Items]
Subtotal	13	12
Building and building equipment
Land, Building and Equipment, net [Line Items]
Subtotal	814	794
Leasehold improvements
Land, Building and Equipment, net [Line Items]
Subtotal	124	135
Plant machinery
Land, Building and Equipment, net [Line Items]
Subtotal	1,149	1,124
Office furniture and equipment
Land, Building and Equipment, net [Line Items]
Subtotal	476	565
Other
Land, Building and Equipment, net [Line Items]
Subtotal	45	45
Construction in progress
Land, Building and Equipment, net [Line Items]
Subtotal	$ 17	$ 23
Minimum
Land, Building and Equipment, net [Line Items]
Estimated Useful Lives (Years)	3 years
Minimum \| Building and building equipment
Land, Building and Equipment, net [Line Items]
Estimated Useful Lives (Years)	25 years
Minimum \| Plant machinery
Land, Building and Equipment, net [Line Items]
Estimated Useful Lives (Years)	5 years
Minimum \| Office furniture and equipment
Land, Building and Equipment, net [Line Items]
Estimated Useful Lives (Years)	3 years
Minimum \| Other
Land, Building and Equipment, net [Line Items]
Estimated Useful Lives (Years)	4 years
Maximum
Land, Building and Equipment, net [Line Items]
Estimated Useful Lives (Years)	5 years
Maximum \| Building and building equipment
Land, Building and Equipment, net [Line Items]
Estimated Useful Lives (Years)	50 years
Maximum \| Plant machinery
Land, Building and Equipment, net [Line Items]
Estimated Useful Lives (Years)	12 years
Maximum \| Office furniture and equipment
Land, Building and Equipment, net [Line Items]
Estimated Useful Lives (Years)	15 years
Maximum \| Other
Land, Building and Equipment, net [Line Items]
Estimated Useful Lives (Years)	20 years

Land, Buildings, Equipment and Software, Net - Internal Use Software (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Land, Buildings, Equipment and Software [Abstract]
Internal use software, capitalized costs, net	$ 118	$ 122
Internal use, useful lives, minimum, years	3 years
Internal use, useful lives, maximum, years	7 years

Lessee - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Remaining terms of leases		12 years
Remaining lease obligation		$ 9	$ 7
Finance leases, discount rate		4.34%	4.07%
Finance lease, right-of-use asset		$ 10	$ 7
Operating lease expense, net of sublease income, under ASC 840	$ 147

Lessee - Components of Lease Expense (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Operating lease expense	$ 113	$ 125
Short-term lease expense	20	21
Variable lease expense	47	48
Sublease income	(2)	(1)
Total Lease expense	$ 178	$ 193

Lessee - Operating Lease ROU Asset, Net and Operating Lease Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Other long-term assets	$ 310	$ 319
Accrued expenses and other current liabilities	83	87
Other long-term liabilities	250	260
Total Operating lease liabilities	$ 333	$ 347
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:OtherAssetsNoncurrent	us-gaap:OtherAssetsNoncurrent
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:OtherLiabilitiesCurrent	us-gaap:OtherLiabilitiesCurrent
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	us-gaap:OtherLiabilitiesNoncurrent	us-gaap:OtherLiabilitiesNoncurrent

Lessee - Supplemental Information Related to Operating Leases (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Cash paid for amounts included in the measurement of lease liabilities - Operating cash flows	$ 119	$ 126
Right-of-use assets obtained in exchange for new lease liabilities	$ 76	$ 75
Weighted-average remaining lease term (years)	5 years	4 years
Weighted-average discount rate (percentage)	5.03%	5.47%

Lessee - Maturities and Additional Information Related to Operating Lease Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
12 months	$ 104	$ 109
24 months	88	87
36 months	68	73
48 months	37	56
60 months	25	24
Thereafter	52	45
Total Lease payments	374	394
Less: Imputed interest	41	47
Total Operating lease liabilities	$ 333	$ 347

Investment in Affiliates, at Equity (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Nov. 30, 2019
Schedule of Equity Method Investments [Line Items]
Total Equity in net income of unconsolidated affiliates	$ 4	$ 8	$ 8
Fuji Xerox
Schedule of Equity Method Investments [Line Items]
Ownership percentage (percent)		25.00%		25.00%
Total Equity in net income of unconsolidated affiliates	0	$ 147	25
After-tax restructuring and other charges		20	95
Dividends received from Fuji Xerox		69	23
Other
Schedule of Equity Method Investments [Line Items]
Ownership interest	47	46
Total Equity in net income of unconsolidated affiliates	4	8	8
Fuji Xerox And Other
Schedule of Equity Method Investments [Line Items]
Total Equity in net income of unconsolidated affiliates	$ 4	$ 155	$ 33

Investment in Affiliates, at Equity - Condensed Financial Data for Fuji Xerox Unconsolidated Affiliate (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Schedule of Equity Method Investments [Line Items]
Revenues	$ 7,022	$ 9,066	$ 9,662
Costs and expenses	6,770	8,244	9,113
Income tax expense	64	179	247
Income from Continuing Operations	192	651	310
Less: Net income - noncontrolling interests	0	3	4
Net Income - Fuji Xerox	192	1,353	361
Current assets	5,783	6,140
Total Assets	14,741	15,047
Other Liabilities, Current	840	984
Long-term debt	4,050	3,233
Other long-term liabilities	497	512
Noncontrolling interests	4	7
Fuji Xerox shareholders' equity	5,596	5,594	5,039	$ 5,293
Total Liabilities and Equity	$ 14,741	15,047
Fuji Xerox
Schedule of Equity Method Investments [Line Items]
Revenues		7,667	9,161
Costs and expenses		6,814	8,880
Income before income taxes		853	281
Income tax expense		258	160
Income from Continuing Operations		595	121
Less: Net income - noncontrolling interests		3	2
Net Income - Fuji Xerox		592	119
Current assets		4,876	4,179
Long-term assets		3,964	4,034
Total Assets		8,840	8,213
Short-term debt		49	130
Other Liabilities, Current		1,932	1,827
Long-term debt		16	24
Other long-term liabilities		514	395
Noncontrolling interests		18	30
Fuji Xerox shareholders' equity		6,311	5,807
Total Liabilities and Equity		$ 8,840	$ 8,213

Investment in Affiliates, at Equity - Investment in Affiliate Exchange Rates (Details) - Fuji Xerox	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Schedule of Equity Method Investments [Line Items]
Summary of operations, weighted average rate	109.03	110.28
Balance sheet, year-end rate	108.83	110.26

Investment in Affiliates, at Equity - Other Transactions with Fuji Xerox (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Equity Method Investments and Joint Ventures [Abstract]
Prepaid royalties	$ 100
Fuji Xerox
Schedule of Equity Method Investments [Line Items]
Royalty revenue earned	88	$ 99	$ 96
Inventory purchases from Fuji Xerox	1,077	1,337	1,501
Inventory sales to Fuji Xerox	25	33	43
R&D payments received from Fuji Xerox	1	0	1
R&D payments paid to Fuji Xerox	5	4	$ 8
Net amounts due to Fuji Xerox	$ 102	$ 353

Goodwill and Intangible Assets, Net - Goodwill (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Goodwill [Roll Forward]
Beginning Balance, Goodwill	$ 3,900	$ 3,858	$ 3,921
Foreign currency translation	60	28	(63)
Acquisitions		14
Ending Balance, Goodwill	4,071	$ 3,900	$ 3,858
U.K. Acquisitions
Goodwill [Roll Forward]
Acquisitions	98
Canada Acquisition
Goodwill [Roll Forward]
Acquisitions	10
Other
Goodwill [Roll Forward]
Acquisitions	$ 3

Goodwill and Intangible Assets, Net - Intangible Assets by Major Class (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 572	$ 539
Accumulated Amortization	335	340
Net Amount	237	199
Amortization of intangible assets	56	45	$ 48
Amortization expense write-offs	11
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2021	39
2022	39
2023	39
2024	36
2025	31
Xerox Holdings Corporation
Finite-Lived Intangible Assets [Line Items]
Net Amount	$ 8
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization	10 years
Gross Carrying Amount	$ 185	140
Accumulated Amortization	74	86
Net Amount	$ 111	54
Distribution network
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization	25 years
Gross Carrying Amount	$ 123	123
Accumulated Amortization	103	99
Net Amount	$ 20	24
Trademarks
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization	19 years
Gross Carrying Amount	$ 235	258
Accumulated Amortization	138	146
Net Amount	$ 97	112
Technology and non-compete
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization	9 years
Gross Carrying Amount	$ 29	18
Accumulated Amortization	20	9
Net Amount	$ 9	$ 9

Restructuring Programs (Details) - USD ($) $ in Millions	12 Months Ended
Restructuring Programs (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Restructuring reserve [Roll Forward]
Balance at beginning of period	$ 70	$ 95	$ 109
Restructuring provision	116	161	189
Reversals of prior charges	(29)	(34)	(33)
Net Current Period Charges	87	127	156
Charges against reserve and currency	(75)	(152)	(170)
Balance at end of period	82	70	95
Reconciliation to the Condensed Consolidated Statements of Cash Flows [Abstract]
Charges against reserve and currency	(75)	(152)	(170)
Asset impairments	0	56	0
Effects of foreign currency and other non-cash items	(6)	3	1
Payments for restructurings	(81)	(93)	(169)
Severance and Related Costs
Restructuring reserve [Roll Forward]
Balance at beginning of period	66	94	108
Restructuring provision	107	81	175
Reversals of prior charges	(21)	(24)	(33)
Net Current Period Charges	86	57	142
Charges against reserve and currency	(74)	(85)	(156)
Balance at end of period	78	66	94
Reconciliation to the Condensed Consolidated Statements of Cash Flows [Abstract]
Charges against reserve and currency	(74)	(85)	(156)
Other Contractual Termination Costs
Restructuring reserve [Roll Forward]
Balance at beginning of period	4	1	1
Restructuring provision	3	19	14
Reversals of prior charges	(2)	(5)	0
Net Current Period Charges	1	14	14
Charges against reserve and currency	(1)	(11)	(14)
Balance at end of period	4	4	1
Reconciliation to the Condensed Consolidated Statements of Cash Flows [Abstract]
Charges against reserve and currency	(1)	(11)	(14)
Asset Impairments
Restructuring reserve [Roll Forward]
Balance at beginning of period	0	0	0
Restructuring provision	6	61	0
Reversals of prior charges	(6)	(5)	0
Net Current Period Charges	0	56	0
Charges against reserve and currency	0	(56)	0
Balance at end of period	0	0	0
Write-off of leased right-of-use assets	4	39
Write-off of owned assets	2	22
Reconciliation to the Condensed Consolidated Statements of Cash Flows [Abstract]
Charges against reserve and currency	$ 0	$ (56)	$ 0

Restructuring Programs - Restructuring and Related Costs (Details) $ in Millions	12 Months Ended
	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($) employee	Dec. 31, 2018 USD ($)
Restructuring Cost and Reserve [Line Items]
Related restructuring costs	$ 6	$ 102
Restructuring payments	81	$ 93	$ 169
H C L Technologies
Restructuring Cost and Reserve [Line Items]
Number of employees transferred \| employee		2,200
Restructuring payments	26	$ 65
Restructuring related costs	21	37
Retention Related Severance Bonuses
Restructuring Cost and Reserve [Line Items]
Related restructuring costs	4	39
Contractual Severance Costs
Restructuring Cost and Reserve [Line Items]
Related restructuring costs	(2)	43
Contractual Severance Costs \| H C L Technologies
Restructuring Cost and Reserve [Line Items]
Related restructuring costs		38
Consulting and Other Costs
Restructuring Cost and Reserve [Line Items]
Related restructuring costs	$ 4	$ 20

Supplementary Financial Information (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2020

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Other Current Assets

Total Other Current Assets

$ 251

$ 201

Other Long-term Assets

Internal use software, net

118

122

Customer contract costs, net

145

163

Operating lease right-of-use asset

310

319

Total Other Long-term Assets

1,455

1,338

Accrued Expenses and Other Current Liabilities

Operating lease obligation

Interest payable

Dividends payable

Total Accrued Expenses and Other Current Liabilities

840

984

Other Long-term Liabilities

Operating lease obligation

250

260

Total Other Long-term Liabilities

497

512

Cash and cash equivalents

2,625

2,740

Litigation deposits in Brazil

Escrow and cash collections related to finance receivable sales

Other restricted cash

Total Restricted Cash

Cash, cash equivalents and restricted cash

2,691

^[1]

2,795

^[1]

$ 1,148

^[1]

$ 1,368

Accrued compensation liabilities

Deferred compensation liabilities

Pension and other benefit liabilities

1,566

1,707

Provision for receivables

116

Provision for inventory

Provision for product warranty

Depreciation of buildings and equipment

101

148

Depreciation and obsolescence of equipment on operating leases

183

225

249

Amortization of internal use software

Amortization of acquired intangible assets

Amortization of customer contract costs

100

Cost of additions to land, buildings and equipment

Cost of additions to internal use software

Common stock dividends - Xerox Holdings

216

229

255

Preferred stock dividends - Xerox Holdings

Payments to noncontrolling interests

Xerox Corporation

Other Current Assets

Total Other Current Assets

251

201

Other Long-term Assets

Total Other Long-term Assets

1,455

1,338

Accrued Expenses and Other Current Liabilities

Total Accrued Expenses and Other Current Liabilities

750

918

Other Long-term Liabilities

Total Other Long-term Liabilities

494

512

Cash and cash equivalents

2,625

2,740

Cash, cash equivalents and restricted cash

2,691

^[2]

2,795

^[2]

1,148

^[2]

$ 1,368

Pension and other benefit liabilities

1,566

1,707

Amortization of acquired intangible assets

$ 48

Fair Value, Recurring | Level 2

Other Long-term Liabilities

Financial liabilities, fair value

Fair Value, Recurring | Level 2 | Deferred compensation liabilities

Other Long-term Liabilities

Financial liabilities, fair value

Pension Plan

Other Long-term Liabilities

Pension liabilities

1,474

1,616

Other Current Assets

Other Current Assets

Income taxes receivable

Royalties, license fees and software maintenance

Restricted cash

Prepaid expenses

Advances and deposits

Other

113

Other Long-term Assets

Other Long-term Assets

Income taxes receivable

Prepaid pension costs

617

451

Internal use software, net

118

122

Restricted cash

Customer contract costs, net

158

176

Operating lease right-of-use asset

310

319

Deferred compensation plan investments

Investments in affiliates, at equity

Other

137

141

Accrued Expenses and Other Current Liabilities

Accrued Expenses and Other Current Liabilities

Income taxes payable

Other taxes payable

Operating lease obligation

Financing lease obligation

Interest payable

Restructuring reserves

Restructuring related costs

Product warranties

Dividends payable

Distributor and reseller rebates/commissions

123

167

Unearned income and other revenue deferrals

140

158

Administration and overhead

Other

142

181

Other Long-term Liabilities

Other Long-term Liabilities

Deferred taxes

Income taxes payable

Operating lease obligation

250

260

Finance lease obligation

Environmental reserves

Restructuring reserves

Other

$ 137

[1]	Balance at December 31, 2018 includes $3 associated with discontinued operations.
[2]	Balance at December 31, 2018 includes $3 associated with discontinued operations.

Debt - Short-term Debt (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Short-term debt	$ 394	$ 1,049
Xerox Holdings Corporation
Debt Instrument [Line Items]
Short-term debt	0	0
Xerox Corporation
Debt Instrument [Line Items]
Short-term debt	0	1,049
Xerox - Other Subsidiaries
Debt Instrument [Line Items]
Short-term debt	$ 394	$ 0

Debt - Long-term Debt (Details) - USD ($) $ in Millions	Sep. 15, 2020	Mar. 15, 2019	Dec. 31, 2020	Dec. 30, 2020	Oct. 31, 2020	Dec. 31, 2019	Mar. 14, 2019
Debt Instrument [Line Items]
Total debt			$ 4,467
Subtotal - Debt issuance costs			(27)			$ (17)
Unamortized premium (discount)			3			(16)
Terminated swaps			1			1
Current swaps			0			1
Less: current maturities			(394)			(1,049)
Total Long-term Debt			4,050			3,233
2021			395
2022			591
2023			1,081
2024			300
2025			750
Thereafter			1,350
Long-term debt maturities, subsequent year by quarter, first			96
Long-term debt maturities, subsequent year by quarter, second			107
Long-term debt maturities, subsequent year by quarter, third			100
Long-term debt maturities, subsequent year by quarter, fourth			92
Xerox Holdings Corporation
Debt Instrument [Line Items]
Total debt			1,500
Subtotal - Debt issuance costs			(13)			0
Less: current maturities			0			0
2021			0
2022			0
2023			0
2024			0
2025			750
Thereafter			750
Xerox Corporation
Debt Instrument [Line Items]
Total debt			2,200
Subtotal - Debt issuance costs			(11)			(17)
Less: current maturities			(394)			(1,049)
Total Long-term Debt			2,557			3,233
2021			0
2022			300
2023			1,000
2024			300
2025			0
Thereafter			600
Xerox - Other Subsidiaries
Debt Instrument [Line Items]
Total debt			767
Subtotal - Debt issuance costs			(3)			0
Less: current maturities			(394)			0
2021			395
2022			291
2023			81
2024			0
2025			0
Thereafter			$ 0
Xerox - Other Subsidiaries \| Secured Borrowing - July 2020
Debt Instrument [Line Items]
Stated Rate (percent)			1.76%
Debt, weighted average interest rate (percentage)			1.73%
Total debt			$ 267			0
Xerox - Other Subsidiaries \| Secured Borrowing - December 2020
Debt Instrument [Line Items]
Stated Rate (percent)			1.74%
Debt, weighted average interest rate (percentage)			1.76%
Total debt			$ 500			0
Senior Notes due 2025 5.00% \| Xerox Holdings Corporation
Debt Instrument [Line Items]
Stated Rate (percent)			5.00%
Debt, weighted average interest rate (percentage)			4.95%
Total debt			$ 750			0
Senior Notes due 2028 5.50% \| Xerox Holdings Corporation
Debt Instrument [Line Items]
Stated Rate (percent)			5.50%
Debt, weighted average interest rate (percentage)			5.40%
Total debt			$ 750			0
Senior Notes due 2020 2.80% \| Xerox Corporation
Debt Instrument [Line Items]
Total debt			0			313
Senior Notes due 2020 3.50% \| Xerox Corporation
Debt Instrument [Line Items]
Total debt			0			362
Senior Notes due 2020 2.75% \| Xerox Corporation
Debt Instrument [Line Items]
Total debt			0			376
Senior Notes due 2021 4.50% \| Xerox Corporation
Debt Instrument [Line Items]
Total debt			$ 0	$ 312	$ 1,062	1,062
Senior Notes due 2022 4.07% \| Xerox Corporation
Debt Instrument [Line Items]
Stated Rate (percent)			4.07%
Debt, weighted average interest rate (percentage)			4.07%
Total debt			$ 300			300
Senior Notes due 2023 4.38%
Debt Instrument [Line Items]
Stated Rate (percent)	4.375%	4.125%					3.625%
Increase to coupon rate	0.25%	0.50%
Senior Notes due 2023 4.38% \| Xerox Corporation
Debt Instrument [Line Items]
Stated Rate (percent)			4.38%
Debt, weighted average interest rate (percentage)			3.68%
Total debt			$ 1,000			1,000
Senior Notes due 2024 3.80% \| Xerox Corporation
Debt Instrument [Line Items]
Stated Rate (percent)			3.80%
Debt, weighted average interest rate (percentage)			3.84%
Total debt			$ 300			300
Senior Notes due 2035 4.80% \| Xerox Corporation
Debt Instrument [Line Items]
Stated Rate (percent)			4.80%
Debt, weighted average interest rate (percentage)			4.84%
Total debt			$ 250			250
Senior Notes due 2039 6.75% \| Xerox Corporation
Debt Instrument [Line Items]
Stated Rate (percent)			6.75%
Debt, weighted average interest rate (percentage)			6.78%
Total debt			$ 350			350
Long-term Debt
Debt Instrument [Line Items]
Total debt			4,467			4,313
Long-term Debt \| Xerox Holdings Corporation
Debt Instrument [Line Items]
Total debt			1,500			0
Long-term Debt \| Xerox Corporation
Debt Instrument [Line Items]
Total debt			2,200			4,313
Long-term Debt \| Xerox - Other Subsidiaries
Debt Instrument [Line Items]
Total debt			$ 767			$ 0

Debt - Senior Notes (Details) - USD ($) $ in Millions		1 Months Ended				12 Months Ended
Debt - Senior Notes (Details) - USD ($) $ in Millions	Aug. 24, 2020	Oct. 31, 2020	Aug. 31, 2020	Aug. 24, 2020	Jul. 31, 2020	Dec. 31, 2020	Dec. 30, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Debt issuance costs						$ 27		$ 17
Long-term debt, gross						4,467
Aggregate principal amount					$ 313
Net loss		$ 18				8
Redemption premium						5
Xerox Holdings Corporation
Debt Instrument [Line Items]
Debt issuance costs						13		0
Long-term debt, gross						1,500
Xerox Corporation
Debt Instrument [Line Items]
Debt issuance costs						11		17
Long-term debt, gross						2,200
Senior Notes due 2021 4.50% \| Xerox Corporation
Debt Instrument [Line Items]
Long-term debt, gross		1,062				0	$ 312	$ 1,062
Senior Notes
Debt Instrument [Line Items]
Cash consideration		769				$ 317
Redemption premium		19
Senior Notes \| 2025 Senior Notes
Debt Instrument [Line Items]
Debt value	$ 200		$ 550	$ 200
Debt interest rate, percent			5.00%
Debt Instrument Issuance Price Percentage Of Par	100.75%			100.75%
Senior Notes \| 2028 Senior Notes
Debt Instrument [Line Items]
Debt value	$ 200		$ 550	$ 200
Debt interest rate, percent			5.50%
Debt Instrument Issuance Price Percentage Of Par	102.50%			102.50%
Senior Notes \| 2025 And 2028 Senior Notes
Debt Instrument [Line Items]
Proceeds, net of fees and expenses	$ 405		$ 1,089	$ 1,494
Senior Notes \| 2020 Senior Notes 3.50%
Debt Instrument [Line Items]
Debt interest rate, percent						3.50%
Debt repurchased						$ 362
Senior Notes \| 2020 Senior Notes 2.75%
Debt Instrument [Line Items]
Debt interest rate, percent						2.75%
Debt repurchased						$ 376
Senior Notes \| 2021 Senior Notes
Debt Instrument [Line Items]
Issuance price		$ 750
Senior Notes \| Senior Notes due 2021 4.50%
Debt Instrument [Line Items]
Debt interest rate, percent		4.50%

Debt - Credit Facility (Details)	12 Months Ended
Debt - Credit Facility (Details)	Dec. 31, 2020 USD ($)	Jul. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Jul. 31, 2019 USD ($)
Line of Credit Facility [Line Items]
Line of credit facility, fair value of amount outstanding	$ 0		$ 0
Letters of credit	0		$ 0
Revolving Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility, accordion feature	$ 750,000,000
Extension period	1 year
Debt guaranteed by domestic subsidiary	$ 100,000,000
Line of credit facility, commitment fee (percent)	0.25%
Revolving Credit Facility \| Minimum
Line of Credit Facility [Line Items]
Line of credit facility, interest rate, base rate (percent)	0.00%
Line of credit facility, interest rate, LIBOR plus all-in spread rate	1.00%
All-in interest rate spread based on credit rating (percent)	0.375%
Line of credit facility, commitment fee (percent)	0.125%
Line of credit facility, covenant terms	3.00x
Revolving Credit Facility \| Maximum
Line of Credit Facility [Line Items]
Line of credit facility, interest rate, base rate (percent)	0.70%
Line of credit facility, interest rate, LIBOR plus all-in spread rate	1.70%
All-in interest rate spread based on credit rating (percent)	1.375%
Line of credit facility, commitment fee (percent)	0.30%
Line of credit facility, covenant terms	4.25x
Current Credit Facility \| Revolving Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility, current borrowing capacity	$ 1,800,000,000
Letter of credit, credit facility sub-facility, maximum borrowing amount	$ 250,000,000
Credit Agreement Amendment No3
Line of Credit Facility [Line Items]
Minimum unrestricted cash		$ 1,000,000,000.0
Borrowed money to consolidated EBITDA		4.25
Cap on cash netting				$ 1,750,000,000

Debt - Secured Borrowings and Collateral (Details) - USD ($)
$ in Millions

1 Months Ended

12 Months Ended

Jul. 31, 2020

Dec. 31, 2020

Dec. 30, 2020

Oct. 31, 2020

Dec. 31, 2019

Debt Instrument [Line Items]

Secured loan

$ 340

$ 500

Expected life

3 years

2 years 6 months

Aggregate principal amount

$ 313

Long-term debt, gross

$ 4,467

Billed portion of finance receivables, net

$ 3

Finance receivables, net

1,082

1,158

Finance Receivables Due After One Year, Net

^[1]

1,984

2,082

Total Assets

14,741

15,047

Total Long-term Debt

4,050

3,233

Total Liabilities

8,931

9,239

Debt Current

Debt Instrument [Line Items]

Unamortized debt issuance costs

Long Term Debt And Lease Obligation

Debt Instrument [Line Items]

Unamortized debt issuance costs

Special Purpose Entity (SPE)

Debt Instrument [Line Items]

Billed portion of finance receivables, net

Finance receivables, net

350

Finance Receivables Due After One Year, Net

510

Equipment on operating leases, net

918

394

370

764

Debt Instrument [Line Items]

Long-term debt, gross

2,200

Billed portion of finance receivables, net

Finance receivables, net

1,082

1,158

Finance Receivables Due After One Year, Net

1,984

2,082

Total Assets

14,730

15,047

Total Long-term Debt

2,557

3,233

Total Liabilities

7,345

9,173

Senior Notes due 2020 2.80% | Xerox Corporation

Debt Instrument [Line Items]

Long-term debt, gross

313

Senior Notes due 2020 2.80% | Senior Notes

Debt Instrument [Line Items]

Stated Rate (percent)

2.80%

Senior Notes due 2021 4.50% | Xerox Corporation

Debt Instrument [Line Items]

Long-term debt, gross

$ 312

$ 1,062

Senior Notes due 2021 4.50% | Senior Notes

Debt Instrument [Line Items]

Stated Rate (percent)

4.50%

Special Purpose Entity (SPE)

Debt Instrument [Line Items]

Financing receivables sold

$ 355

$ 610

Net book value of rights to payments under operating leases sold

$ 10

[1]	Allowances at December 31, 2020 determined in accordance with ASU 2016-13 adopted effective January 1, 2020. Refer to Notes 1, 7 and 8 for additional information.

Debt - Interest (Details) - USD ($)	12 Months Ended
Debt - Interest (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Interest paid	$ 181,000,000	$ 221,000,000	$ 231,000,000
Interest expense	215,000,000	236,000,000	244,000,000
Interest income	240,000,000	$ 260,000,000	$ 283,000,000
Xerox Holdings Corporation
Debt Instrument [Line Items]
Interest paid	$ 32

Financial Instruments - Fair Value Hedges (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Derivative [Line Items]
Derivative liability, notional amount		$ 100,000,000
Unamortized balance of fair value adjustments - terminated swaps	$ 1,000,000	1,000,000
Amortization of fair value adjustments for terminated swaps	2,000,000	1,000,000	$ 3,000,000
Extinguishment of debt	2,000,000
Senior Note 2021
Derivative [Line Items]
Net asset fair value	4,000,000
Derivative liability, notional amount	200,000,000
Senior Note 2021 \| Fair Value Hedging
Derivative [Line Items]
Ineffective Portion Recorded to Earnings Prior to Termination	0	$ 0	$ 0
Fair value adjustment to the hedged debt	$ 4,000,000

Financial Instruments - Foreign Exchange Risk Management (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Summary of Foreign Exchange Hedging Positions [Abstract]
Derivative notional value	$ 1,161
Average maturity of foreign exchange hedging contracts - within three months (percent)	81.00%
Average maturity of foreign exchange hedging contracts - within three months and six months (percent)	9.00%
Average maturity of foreign exchange hedging contracts - within six and twelve months (percent)	10.00%
Exposure increase percent	6.40%
Derivative assets (liabilities), at fair value, net	$ 2	$ (5)
Japanese Yen/U.S. Dollar
Summary of Foreign Exchange Hedging Positions [Abstract]
Derivative notional value	398
Euro/U.K. Pound Sterling
Summary of Foreign Exchange Hedging Positions [Abstract]
Derivative notional value	237
Japanese Yen/Euro
Summary of Foreign Exchange Hedging Positions [Abstract]
Derivative notional value	186
U.S. Dollar/Euro
Summary of Foreign Exchange Hedging Positions [Abstract]
Derivative notional value	90
U.S. Dollar/Canadian Dollar
Summary of Foreign Exchange Hedging Positions [Abstract]
Derivative notional value	46
Euro/U.S. Dollar
Summary of Foreign Exchange Hedging Positions [Abstract]
Derivative notional value	46
U.K. Pound Sterling/Euro
Summary of Foreign Exchange Hedging Positions [Abstract]
Derivative notional value	37
U.S. Dollar/Japanese Yen
Summary of Foreign Exchange Hedging Positions [Abstract]
Derivative notional value	31
Euro/Danish Krone
Summary of Foreign Exchange Hedging Positions [Abstract]
Derivative notional value	21
U.S. Dollar/Russian Ruble
Summary of Foreign Exchange Hedging Positions [Abstract]
Derivative notional value	15
U.S. Dollar/Israeli Shekel
Summary of Foreign Exchange Hedging Positions [Abstract]
Derivative notional value	9
U.S. Dollar/Brazilian Real
Summary of Foreign Exchange Hedging Positions [Abstract]
Derivative notional value	9
Euro/Norwegian Kroner
Summary of Foreign Exchange Hedging Positions [Abstract]
Derivative notional value	4
All Other
Summary of Foreign Exchange Hedging Positions [Abstract]
Derivative notional value	32
Foreign exchange contract
Summary of Foreign Exchange Hedging Positions [Abstract]
Derivative, fair value, net	2
Foreign exchange contract \| Japanese Yen/U.S. Dollar
Summary of Foreign Exchange Hedging Positions [Abstract]
Derivative, fair value, net	6
Foreign exchange contract \| Euro/U.K. Pound Sterling
Summary of Foreign Exchange Hedging Positions [Abstract]
Derivative, fair value, net	0
Foreign exchange contract \| Japanese Yen/Euro
Summary of Foreign Exchange Hedging Positions [Abstract]
Derivative, fair value, net	(2)
Foreign exchange contract \| U.S. Dollar/Euro
Summary of Foreign Exchange Hedging Positions [Abstract]
Derivative, fair value, net	(1)
Foreign exchange contract \| U.S. Dollar/Canadian Dollar
Summary of Foreign Exchange Hedging Positions [Abstract]
Derivative, fair value, net	(1)
Foreign exchange contract \| Euro/U.S. Dollar
Summary of Foreign Exchange Hedging Positions [Abstract]
Derivative, fair value, net	0
Foreign exchange contract \| U.K. Pound Sterling/Euro
Summary of Foreign Exchange Hedging Positions [Abstract]
Derivative, fair value, net	0
Foreign exchange contract \| U.S. Dollar/Japanese Yen
Summary of Foreign Exchange Hedging Positions [Abstract]
Derivative, fair value, net	0
Foreign exchange contract \| Euro/Danish Krone
Summary of Foreign Exchange Hedging Positions [Abstract]
Derivative, fair value, net	0
Foreign exchange contract \| U.S. Dollar/Russian Ruble
Summary of Foreign Exchange Hedging Positions [Abstract]
Derivative, fair value, net	0
Foreign exchange contract \| U.S. Dollar/Israeli Shekel
Summary of Foreign Exchange Hedging Positions [Abstract]
Derivative, fair value, net	0
Foreign exchange contract \| U.S. Dollar/Brazilian Real
Summary of Foreign Exchange Hedging Positions [Abstract]
Derivative, fair value, net	0
Foreign exchange contract \| Euro/Norwegian Kroner
Summary of Foreign Exchange Hedging Positions [Abstract]
Derivative, fair value, net	0
Foreign exchange contract \| All Other
Summary of Foreign Exchange Hedging Positions [Abstract]
Derivative, fair value, net	$ 0

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

Financial Instruments - Summary of Derivative Instruments Gain (Losses) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of cash flow hedges gains (losses), pre-tax	$ 4,000,000	$ 2,000,000	$ 9,000,000
Other unrealized gains (losses), net	2,000,000
Foreign currency transaction gain (loss), before tax	(3,000,000)	(7,000,000)	(5,000,000)
Cash Flow Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivative, net	0	0	0
Cash Flow Hedging \| Foreign currency gain (loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivative, net	0
Underlying Derivative Exposure \| Cash Flow Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivative, net	0	0	0
Interest Rate Contract \| Fair Value Hedging \| Interest expense
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivative, net	(1,000,000)	4,000,000	(3,000,000)
Hedged item gain (loss) recognized in income	1,000,000	(4,000,000)	3,000,000
Foreign exchange contracts – forwards \| Cash Flow Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value of cash flow hedges gains (losses), pre-tax	4,000,000	2,000,000	9,000,000
Foreign exchange contracts – forwards \| Cash Flow Hedging \| Cost of sales
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) reclassified from AOCI to income	(1,000,000)	9,000,000	(14,000,000)
Foreign exchange contracts – forwards \| Derivatives NOT Designated as Hedging Instruments \| Foreign currency gain (loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, gain (loss) on derivative, net	$ 14,000,000	$ (6,000,000)	$ 21,000,000

Fair Value of Financial Assets and Liabilities - Recurring (Details) - Fair Value, Recurring - Significant Other Observable Inputs (Level 2) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Assets:
Total	$ 25	$ 22
Liabilities:
Total	22	26
Options Held
Assets:
Foreign currency options	1	0
Foreign exchange contracts – forwards
Assets:
Total	6	2
Liabilities:
Total	5	8
Interest rate swaps
Assets:
Total	0	1
Deferred compensation
Assets:
Total	18	19
Liabilities:
Total	$ 17	$ 18

Fair Value of Financial Assets and Liabilities - Nonrecurring (Details) - Fair Value, Nonrecurring - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	$ 2,625	$ 2,740
Accounts receivable, net	883	1,236
Short-term debt and current portion of long-term debt	394	1,049
Total Long-term debt	4,050	3,233
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	2,625	2,740
Accounts receivable, net	883	1,236
Short-term debt and current portion of long-term debt	396	1,054
Total Long-term debt	4,266	3,331
Xerox Holdings Corporation \| Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total Long-term debt	1,493	0
Xerox Holdings Corporation \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total Long-term debt	1,596	0
Xerox Corporation \| Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total Long-term debt	2,187	3,233
Xerox Corporation \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total Long-term debt	2,298	3,331
Xerox - Other Subsidiaries \| Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total Long-term debt	370	0
Xerox - Other Subsidiaries \| Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total Long-term debt	$ 372	$ 0

Employee Benefit Plans (Details) - USD ($) $ in Millions	12 Months Ended
Employee Benefit Plans (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Change in Plan Assets:
Employer contributions	$ 25
Amounts Recognized in the Consolidated Balance Sheets:
Pension and other benefit liabilities	(1,566)	$ (1,707)
Post-retirement medical benefits	(340)	(352)
Pension Plan
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Benefit obligation - ending	10,906
Change in Plan Assets:
Fair value of plan assets -beginning	8,878
Employer contributions	139
Fair value of plan assets - ending	10,001	8,878
Net Funded Status	(905)
Other Postretirement Benefits Plan
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Benefit obligation - beginning	385	385
Service cost	2	2	$ 4
Interest cost	12	15	23
Plan participants' contributions	10	10
Actuarial loss	4	8
Currency exchange rate changes	3	5
Plan Amendments/Curtailments	(11)	0
Benefits paid/settlements	(35)	(40)
Other	0	0
Benefit obligation - ending	370	385	385
Change in Plan Assets:
Fair value of plan assets -beginning	0	0
Actual return on plan assets	0	0
Employer contributions	25	30
Plan participants' contributions	10	10
Currency exchange rate changes	0	0
Benefits paid/settlements	(35)	(40)
Other	0	0
Fair value of plan assets - ending	0	0	0
Net Funded Status	(370)	(385)
Amounts Recognized in the Consolidated Balance Sheets:
Other long-term assets	0	0
Accrued compensation and benefit costs	(30)	(33)
Pension and other benefit liabilities	0	0
Post-retirement medical benefits	(340)	(352)
Net Amounts Recognized	(370)	(385)
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract]
Net actuarial loss (gain)	(23)	(29)
Prior service (credit) cost	(99)	(164)
Total Pre-tax loss (gain)	(122)	(193)
United States \| Pension Plan
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Benefit obligation - beginning	3,598	3,234
Service cost	2	2	2
Interest cost	196	218	63
Plan participants' contributions	0	0
Actuarial loss	240	564
Currency exchange rate changes	0	0
Plan Amendments/Curtailments	0	0
Benefits paid/settlements	(289)	(420)
Other	0	0
Benefit obligation - ending	3,747	3,598	3,234
Change in Plan Assets:
Fair value of plan assets -beginning	2,493	2,358
Actual return on plan assets	563	529
Employer contributions	35	26
Plan participants' contributions	0	0
Currency exchange rate changes	0	0
Benefits paid/settlements	(289)	(420)
Other	0	0
Fair value of plan assets - ending	2,802	2,493	2,358
Net Funded Status	(945)	(1,105)
Amounts Recognized in the Consolidated Balance Sheets:
Other long-term assets	0	0
Accrued compensation and benefit costs	(24)	(25)
Pension and other benefit liabilities	(921)	(1,080)
Post-retirement medical benefits	0	0
Net Amounts Recognized	(945)	(1,105)
Accumulated Benefit Obligation	3,747	3,598
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract]
Net actuarial loss (gain)	874	1,059
Prior service (credit) cost	(1)	(3)
Total Pre-tax loss (gain)	873	1,056
Foreign Plan \| Pension Plan
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Benefit obligation - beginning	6,492	6,007
Service cost	20	22	27
Interest cost	113	153	149
Plan participants' contributions	3	3
Actuarial loss	439	472
Currency exchange rate changes	374	114
Plan Amendments/Curtailments	2	(2)
Benefits paid/settlements	(284)	(270)
Other	0	(7)
Benefit obligation - ending	7,159	6,492	6,007
Change in Plan Assets:
Fair value of plan assets -beginning	6,385	5,729
Actual return on plan assets	637	680
Employer contributions	104	115
Plan participants' contributions	3	3
Currency exchange rate changes	354	135
Benefits paid/settlements	(284)	(270)
Other	0	(7)
Fair value of plan assets - ending	7,199	6,385	$ 5,729
Net Funded Status	40	(107)
Amounts Recognized in the Consolidated Balance Sheets:
Other long-term assets	617	451
Accrued compensation and benefit costs	(24)	(22)
Pension and other benefit liabilities	(553)	(536)
Post-retirement medical benefits	0	0
Net Amounts Recognized	40	(107)
Accumulated Benefit Obligation	7,018	6,326
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract]
Net actuarial loss (gain)	1,471	1,462
Prior service (credit) cost	27	22
Total Pre-tax loss (gain)	$ 1,498	$ 1,484

Employee Benefit Plans - Accumulated Benefit Obligation in Excess of Plan Assets (Details) - Pension Plan - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Defined Benefit Plan Disclosure [Line Items]
Accumulated Benefit Obligation	$ 5,170	$ 4,834
Fair Value of Plan Assets	3,675	3,190
Benefit Obligation	5,201	4,857
Fair Value of Plan Assets	3,675	3,190
Fair Value of Pension Plan Assets	10,001	8,878
Pension Benefit Obligations	10,906
Net Funded Status	(905)
United States
Defined Benefit Plan Disclosure [Line Items]
Accumulated Benefit Obligation	3,747	3,598
Fair Value of Plan Assets	2,802	2,493
Benefit Obligation	3,747	3,598
Fair Value of Plan Assets	2,802	2,493
Fair Value of Pension Plan Assets	2,802	2,493	$ 2,358
Pension Benefit Obligations	3,747	3,598	3,234
Net Funded Status	(945)	(1,105)
Foreign Plan
Defined Benefit Plan Disclosure [Line Items]
Accumulated Benefit Obligation	1,423	1,236
Fair Value of Plan Assets	873	697
Benefit Obligation	1,454	1,259
Fair Value of Plan Assets	873	697
Fair Value of Pension Plan Assets	7,199	6,385	5,729
Pension Benefit Obligations	7,159	6,492	$ 6,007
Net Funded Status	40	(107)
U.K.
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Pension Plan Assets	4,707
Pension Benefit Obligations	4,218
Net Funded Status	489
Netherlands
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Pension Plan Assets	1,266
Pension Benefit Obligations	1,226
Net Funded Status	40
Canada
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Pension Plan Assets	794
Pension Benefit Obligations	797
Net Funded Status	(3)
Germany
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Pension Plan Assets	0
Pension Benefit Obligations	395
Net Funded Status	(395)
Other
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Pension Plan Assets	432
Pension Benefit Obligations	523
Net Funded Status	(91)
Underfunded Plan \| United States
Defined Benefit Plan Disclosure [Line Items]
Accumulated Benefit Obligation	3,408	3,261
Fair Value of Plan Assets	2,802	2,493
Benefit Obligation	3,408	3,261
Fair Value of Plan Assets	2,802	2,493
Underfunded Plan \| Foreign Plan
Defined Benefit Plan Disclosure [Line Items]
Accumulated Benefit Obligation	921	767
Fair Value of Plan Assets	873	697
Benefit Obligation	942	780
Fair Value of Plan Assets	873	697
Unfunded Plan \| United States
Defined Benefit Plan Disclosure [Line Items]
Accumulated Benefit Obligation	339	337
Fair Value of Plan Assets	0	0
Benefit Obligation	339	337
Fair Value of Plan Assets	0	0
Fair Value of Pension Plan Assets	0
Pension Benefit Obligations	339
Net Funded Status	(339)
Unfunded Plan \| Foreign Plan
Defined Benefit Plan Disclosure [Line Items]
Accumulated Benefit Obligation	502	469
Fair Value of Plan Assets	0	0
Benefit Obligation	512	479
Fair Value of Plan Assets	0	$ 0
Funded Plan \| United States
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Pension Plan Assets	2,802
Pension Benefit Obligations	3,408
Net Funded Status	$ (606)

Employee Benefit Plans - Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Sep. 30, 2018
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plans	$ 58	$ 109	$ 175
Net actuarial (gain) loss	117	(275)	273
Amortization of net actuarial (loss) gain	(138)	(156)	(252)
Amortization of net prior service credit	(80)	(81)	(26)
Total Recognized in Other Comprehensive Income	(112)	65	(540)
Interest expense on non-TRA obligations	184	243	258
Interest (income) expense allocated to TRA participant accounts	125	128	(46)
Expected Investment Income on Non-TRA Assets	283	315	357
Actual investment income (loss) on TRA assets	125	128	(46)
Other Postretirement Benefits Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	2	2	4
Interest cost	12	15	23
Expected return on plan assets	0	0	0
Recognized net actuarial loss (gain)	(1)	(5)	0
Amortization of prior service credit	(76)	(77)	(19)
Recognized settlement loss	0	0	0
Recognized curtailment gain	0	0	0
Defined Benefit Plans	(63)	(65)	8
Net Periodic Benefit Cost (Credit)	(63)	(65)	8
Net actuarial (gain) loss	4	8	(63)
Prior service cost (credit)	(11)	0	(234)
Amortization of net actuarial (loss) gain	1	5	0
Amortization of net prior service credit	76	77	19
Curtailment gain	0	0	0
Total Recognized in Other Comprehensive Income	70	90	(278)
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income (Loss)	7	25	(270)
United States \| Pension Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	2	2	2
Interest cost	196	218	63
Expected return on plan assets	(217)	(210)	(67)
Recognized net actuarial loss (gain)	27	24	22
Amortization of prior service credit	(2)	(2)	(2)
Recognized settlement loss	53	93	173
Recognized curtailment gain	0	0	0
Defined Benefit Plans	59	125	191
Defined contribution plans	1	26	37
Net Periodic Benefit Cost (Credit)	60	151	228
Net actuarial (gain) loss	(105)	243	(50)
Prior service cost (credit)	0	0	0
Amortization of net actuarial (loss) gain	(80)	(117)	(195)
Amortization of net prior service credit	2	2	2
Curtailment gain	0	0	0
Total Recognized in Other Comprehensive Income	(183)	128	(243)
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income (Loss)	(123)	279	(15)
Foreign Plan \| Pension Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	20	22	27
Interest cost	113	153	149
Expected return on plan assets	(191)	(233)	(244)
Recognized net actuarial loss (gain)	58	43	56
Amortization of prior service credit	(1)	(2)	(4)
Recognized settlement loss	1	1	1
Recognized curtailment gain	(1)	0	(1)
Defined Benefit Plans	(1)	(16)	(16)
Defined contribution plans	18	23	29
Net Periodic Benefit Cost (Credit)	17	7	13
Net actuarial (gain) loss	(9)	24	33
Prior service cost (credit)	4	0	41
Amortization of net actuarial (loss) gain	(59)	(44)	(57)
Amortization of net prior service credit	1	2	4
Curtailment gain	1	0	1
Total Recognized in Other Comprehensive Income	(62)	(18)	22
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income (Loss)	$ (45)	$ (11)	$ 35
United States of America, Dollars
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Out-of-period adjustment, gross				$ (53)

Employee Benefit Plans - Plan Amendments (Details) £ in Millions, $ in Millions	1 Months Ended		12 Months Ended
	Oct. 31, 2020 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2020 GBP (£)	Dec. 31, 2018 GBP (£)
Pension Plan \| United States \| United States of America, Dollars
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Cost of equalization		$ 42		$ 4
Pension Plan \| U.K.
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Cost of equalization, percent of defined benefit plan obligation (percent)				1.20%	1.20%
Pension Plan \| U.K. \| United Kingdom, Pounds
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Cost of equalization \| £					£ 3	£ 33
Other Postretirement Benefits Plan \| United States
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Accumulated benefit obligation, increase (decrease) for plan amendment	$ (11)		$ 283
Benefit obligation, increase (decrease) for plan amendment			216
Actuarial gain, increase (decrease) for plan amendment			$ 67
Other Postretirement Benefits Plan \| Canada
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Accumulated benefit obligation, increase (decrease) for plan amendment		$ (19)
United States \| U.K.
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Annual amortization to prior service cost				$ 2

Employee Benefit Plans - Defined Benefit Plans Measured Using Significant Unobservable Inputs Level 3 (Details) - Pension Plan - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value of plan assets -beginning	$ 8,878
Fair value of plan assets - ending	10,001	$ 8,878
U.S.
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value of plan assets -beginning	2,493	2,358
Fair value of plan assets - ending	2,802	2,493
U.S. \| Real estate
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value of plan assets -beginning	15
Fair value of plan assets - ending	41	15
U.S. \| Guaranteed insurance contracts
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value of plan assets -beginning	0
Fair value of plan assets - ending	0	0
U.S. \| Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value of plan assets -beginning	5
Fair value of plan assets - ending	31	5
U.S. \| Level 3 \| Real estate
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value of plan assets -beginning	5	0
Purchases	27	5
Sales	0	0
Unrealized gains (losses)	(1)	0
Currency translation	0	0
Fair value of plan assets - ending	31	5
U.S. \| Level 3 \| Guaranteed insurance contracts
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value of plan assets -beginning	0
Fair value of plan assets - ending	0	0
Foreign Plan
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value of plan assets -beginning	6,385	5,729
Fair value of plan assets - ending	7,199	6,385
Foreign Plan \| Real estate
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value of plan assets -beginning	335
Fair value of plan assets - ending	316	335
Foreign Plan \| Guaranteed insurance contracts
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value of plan assets -beginning	90
Fair value of plan assets - ending	86	90
Foreign Plan \| Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value of plan assets -beginning	314	308
Purchases	3	2
Sales	(19)	(9)
Unrealized gains (losses)	(20)	15
Currency translation	19	(2)
Fair value of plan assets - ending	297	314
Foreign Plan \| Level 3 \| Real estate
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value of plan assets -beginning	219	210
Purchases	0	0
Sales	(15)	0
Unrealized gains (losses)	(8)	9
Currency translation	12	0
Fair value of plan assets - ending	208	219
Foreign Plan \| Level 3 \| Private equity funds
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value of plan assets -beginning	5	6
Purchases	3	0
Sales	0	(5)
Unrealized gains (losses)	(4)	4
Currency translation	(1)	0
Fair value of plan assets - ending	3	5
Foreign Plan \| Level 3 \| Guaranteed insurance contracts
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value of plan assets -beginning	90	92
Purchases	0	2
Sales	(4)	(4)
Unrealized gains (losses)	(8)	2
Currency translation	8	(2)
Fair value of plan assets - ending	$ 86	$ 90

Employee Benefit Plans - Investment Strategy (Details) - Pension Plan	Dec. 31, 2020	Dec. 31, 2019
U.S.
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined benefit plan, plan assets, allocation (percent)	100.00%	100.00%
Foreign Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined benefit plan, plan assets, allocation (percent)	100.00%	100.00%
Equity investments \| U.S.
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined benefit plan, plan assets, allocation (percent)	23.00%	23.00%
Equity investments \| Foreign Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined benefit plan, plan assets, allocation (percent)	15.00%	14.00%
Fixed income investments \| U.S.
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined benefit plan, plan assets, allocation (percent)	61.00%	61.00%
Fixed income investments \| Foreign Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined benefit plan, plan assets, allocation (percent)	44.00%	46.00%
Real estate \| U.S.
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined benefit plan, plan assets, allocation (percent)	6.00%	6.00%
Real estate \| Foreign Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined benefit plan, plan assets, allocation (percent)	4.00%	5.00%
Private equity/venture capital \| U.S.
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined benefit plan, plan assets, allocation (percent)	8.00%	8.00%
Private equity/venture capital \| Foreign Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined benefit plan, plan assets, allocation (percent)	22.00%	24.00%
Other \| U.S.
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined benefit plan, plan assets, allocation (percent)	2.00%	2.00%
Other \| Foreign Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined benefit plan, plan assets, allocation (percent)	15.00%	11.00%

Employee Benefit Plans - Contributions and Assumptions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Employer contributions		$ 25
Employer discretionary contribution		19	$ 49	$ 66
Qualified Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Employer contributions		10
Pension Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Employer contributions		139
Expected future employer contribution, next fiscal year		130
2021		649
2022		582
2023		586
2024		586
2025		586
Years 2026-2030		2,861
Other Postretirement Benefits Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Employer contributions		25	$ 30
Expected future employer contribution, next fiscal year		30
2021		30
2022		29
2023		28
2024		26
2025		25
Years 2026-2030		$ 107
Discount rate assumptions used to determine benefit obligations (percent)		2.20%	3.00%	4.10%
Discount rate assumptions used to determine net periodic benefit costs (percent)		3.00%	4.10%	3.50%
Health care cost trend rate assumed for next year (percent)		5.70%	6.00%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)(percent)		4.30%	4.30%
Other Postretirement Benefits Plan \| Forecasted
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Discount rate assumptions used to determine net periodic benefit costs (percent)	2.20%
U.S. \| Pension Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Employer contributions		$ 35	$ 26
Expected future employer contribution, next fiscal year		25
2021		360
2022		288
2023		285
2024		280
2025		274
Years 2026-2030		$ 1,214
Discount rate assumptions used to determine benefit obligations (percent)		2.20%	3.10%	4.20%
Rate of compensation increase assumptions used to determine benefit obligation (percent)		0.10%	0.20%	0.20%
Interest crediting rate used to determine benefit obligation (percent)		2.80%	2.80%	2.80%
Discount rate assumptions used to determine net periodic benefit costs (percent)		3.10%	4.20%	3.60%
Expected return on plan assets assumptions used to determine net periodic benefit cost (percent)		6.00%	6.00%	5.80%
Rate of compensation increase assumptions used to determine net periodic benefit cost (percent)		0.20%	0.20%	0.20%
Interest crediting rate used to determine net periodic benefit cost (percent)		2.80%	2.80%	2.80%
U.S. \| Pension Plan \| Forecasted
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Discount rate assumptions used to determine net periodic benefit costs (percent)	2.20%
Expected return on plan assets assumptions used to determine net periodic benefit cost (percent)	5.90%
Rate of compensation increase assumptions used to determine net periodic benefit cost (percent)	0.10%
Interest crediting rate used to determine net periodic benefit cost (percent)	2.80%
Foreign Plan \| Pension Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Employer contributions		$ 104	$ 115
Expected future employer contribution, next fiscal year		105
2021		289
2022		294
2023		301
2024		306
2025		312
Years 2026-2030		$ 1,647
Discount rate assumptions used to determine benefit obligations (percent)		1.30%	1.80%	2.60%
Rate of compensation increase assumptions used to determine benefit obligation (percent)		2.60%	2.60%	2.60%
Interest crediting rate used to determine benefit obligation (percent)		1.50%	1.50%	1.50%
Discount rate assumptions used to determine net periodic benefit costs (percent)		1.80%	2.60%	2.30%
Expected return on plan assets assumptions used to determine net periodic benefit cost (percent)		3.30%	4.00%	3.80%
Rate of compensation increase assumptions used to determine net periodic benefit cost (percent)		2.60%	2.60%	2.60%
Interest crediting rate used to determine net periodic benefit cost (percent)		1.50%	1.50%	1.50%
Foreign Plan \| Pension Plan \| Forecasted
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Discount rate assumptions used to determine net periodic benefit costs (percent)	1.30%
Expected return on plan assets assumptions used to determine net periodic benefit cost (percent)	3.10%
Rate of compensation increase assumptions used to determine net periodic benefit cost (percent)	2.60%
Interest crediting rate used to determine net periodic benefit cost (percent)	1.50%

Income and Other Taxes (Details) - USD ($) $ in Millions	12 Months Ended
Income and Other Taxes (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Domestic income	$ 353	$ 679	$ 331
Foreign (loss) income	(101)	143	218
Income before Income Taxes and Equity Income	$ 252	$ 822	$ 549

Income and Other Taxes - Income Tax Expense (Benefit), Current Deferred, by Jurisdiction (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Current Federal Tax Expense (Benefit)	$ 3	$ (3)	$ 37
Deferred Federal Income Tax Expense (Benefit)	58	98	83
Current Foreign Tax Expense	19	43	46
Deferred Foreign Income Tax Expense (Benefit)	(34)	5	57
Current State Tax Expense	8	15	29
Deferred State Income Tax (Benefit) Expense	10	21	(5)
Income Tax Expense	$ 64	$ 179	$ 247

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income and Other Taxes - Reconciliation of Statutory Tax Rate to Effective Tax Rate (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
U.S. federal statutory income tax rate	21.00%	21.00%	21.00%
Nondeductible expenses	4.10%	1.30%	3.70%
Effect of tax law changes	(10.50%)	(4.60%)	14.50%
Change in valuation allowance for deferred tax assets	9.90%	2.00%	0.60%
State taxes, net of federal benefit	5.50%	3.50%	2.30%
Audit and other tax return adjustments	1.40%	0.60%	(1.80%)
Tax-exempt income, credits and incentives	(5.90%)	(2.10%)	(2.20%)
Foreign rate differential adjusted for U.S. taxation of foreign profits	(2.60%)	0.10%	4.80%
Stock-based compensation	2.30%	(0.30%)	0.20%
Other	0.20%	0.30%	1.90%
Effective Income Tax Rate	25.40%	21.80%	45.00%
Income Taxes Paid	$ 32	$ 94	$ 80

Income and Other Taxes - Allocation of Income Tax Expense Benefit (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax Interperiod Allocaion [Line Items]
Income tax expense	$ 64	$ 179	$ 247
Discontinued operations	0	95	10
Total Income Tax Expense	105	226	420
Changes in defined benefit plans
Income Tax Interperiod Allocaion [Line Items]
Other comprehensive income (loss), tax	43	(55)	131
Cash flow hedges
Income Tax Interperiod Allocaion [Line Items]
Other comprehensive income (loss), tax	1	(1)	5
Translation adjustments
Income Tax Interperiod Allocaion [Line Items]
Other comprehensive income (loss), tax	(3)	8	(9)
Retained Earnings
Income Tax Interperiod Allocaion [Line Items]
Other comprehensive income (loss), tax	$ 0	$ 0	$ 36

- Definition

Amount of tax expense (benefit) related to a discontinued operation. Includes, but is not limited to, tax expense (benefit) related to income (loss) from operations during the phase-out period, tax expense (benefit) related to gain (loss) on disposal, tax expense (benefit) related to gain (loss) for reversal of write-down (write-down) to fair value, less cost to sell, and tax expense (benefit) related to adjustments of a prior period gain (loss) on disposal.

+ References

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+ Details

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

- Definition

Amount of tax expense (benefit) allocated to other comprehensive income (loss).

+ References

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+ Details

Income and Other Taxes - Unrecognized Tax Benefits Rollforward (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance, Beginning	$ 127	$ 108	$ 125
Additions related to current year	3	42	2
Additions related to prior years positions	8	17	3
Reductions related to prior years positions	(10)	(36)	(13)
Settlements with taxing authorities	(8)	(1)	(6)
Reductions related to lapse of statute of limitations	(7)	(3)	(3)
Currency	2	0	0
Balance, Ending	115	127	108
Tax positions, highly certain of realizability but with uncertainty of timing	8	3	8
Accruals for payment of interest and penalties	$ 4	$ 2	$ 2

Income and Other Taxes - Deferred Tax Asset and Liability (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 1986
Deferred Tax Assets And Liabilities [Line Items]
Research and development	$ 150	$ 143
Post-retirement medical benefits	94	98
Net operating losses	377	389
Operating reserves, accruals and deferrals	124	115
Tax credit carryforwards	249	231
Deferred and share-based compensation	13	26
Pension	211	298
Depreciation	35	16
Operating lease liabilities	82	84
Other	44	63
Subtotal	1,379	1,463
Valuation allowance	(396)	(399)
Total	983	1,064
Finance lease and installment sales	247	240
Intangibles and goodwill	140	128
Unremitted earnings of foreign subsidiaries	31	39
Operating lease ROU assets	76	78
Other	16	18
Total	510	503
Total Deferred Taxes, Net	473	561
Deferred tax assets	508	598
Valuation allowance, increase (decrease) in amount	(3)	2	$ (38)
Tax credit carryforwards	249
Carryforwards with no expiration
Deferred Tax Assets And Liabilities [Line Items]
Tax credit carryforwards	2
Deferred tax assets, operating loss carryforwards, not subject to expiration	1,700
Carryforwards that expire
Deferred Tax Assets And Liabilities [Line Items]
Tax credit carryforwards	247
Operating loss carryforwards	600
Other long-term liabilities
Deferred Tax Assets And Liabilities [Line Items]
Deferred tax liabilities	$ (35)	(37)
Accounting Standards Update 2018-05
Deferred Tax Assets And Liabilities [Line Items]
Undistributed Earnings of Foreign Subsidiaries		$ 350		$ 360

Contingencies and Litigation - Brazil Contingencies (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Loss Contingencies [Line Items]
Letters of credit	$ 0	$ 0
Brazil Contingencies
Loss Contingencies [Line Items]
Tax contingency - unreserved	355,000,000	442,000,000
Escrow cash deposits	39,000,000	51,000,000
Surety bonds	112,000,000	135,000,000
Letters of credit	78,000,000	91,000,000
Liens on Brazilian assets	$ 0	$ 0

Contingencies and Litigation - Narrative (Details) - USD ($) $ in Millions		12 Months Ended
	Dec. 13, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Loss Contingencies [Line Items]
Product warranty expense		$ 8	$ 12	$ 14
Product warranty accrual		6	$ 7
Contractual and Corporate Obligations Guarantee and surety bonds
Loss Contingencies [Line Items]
Guarantor obligations, maximum exposure, undiscounted		$ 303
HP Inc. \| Miami Firefighters' Relief & Pension Fund V. Icahn, Et Al
Loss Contingencies [Line Items]
Marketable Securities, Gain (Loss)	$ 128

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

12 Months Ended

Dec. 31, 2020

USD ($)

day

vote

$ / shares

Dec. 31, 2019

USD ($)

Dec. 31, 2018

USD ($)

Class of Stock [Line Items]

Preferred stock, carrying value

$ 214

Preferred stock, annual dividend (in dollars)

^[1]

$ 14

Initial conversion price per share of common stock | $ / shares

$ 26.70

Minimum number of trading days C/S close price must exceed conversion price to trigger Pfd Stock conversion | day

Number of trading days used for measurement | day

Common Stock

Class of Stock [Line Items]

Preferred stock converted into common shares | shares

37.4532

Preferred stock conversion to common stock, shares | shares

6,742,000

Maximum common stock closing price, triggering conversion | $ / shares

$ 39.00

Maximum common stock closing price, percent, triggering conversion

146.10%

Series A

Class of Stock [Line Items]

Preferred stock converted into common shares | shares

180,000

Preferred stock, aggregate liquidation value

$ 180

Preferred stock, carrying value

$ 214

Preferred stock, dividend rate, percentage

8.00%

Preferred stock, annual dividend (in dollars)

$ 14

Number of votes per ten shares | vote

Preferred stock, number of votes if converted | vote

674,157

[1]	Cash dividends declared on preferred stock for 2020, 2019 and 2018 were $20 per share on a quarterly basis and $80 per share on an annual basis.

Shareholders' Equity - Equity Stocks Information (Details) shares in Millions	Dec. 31, 2020 $ / shares shares
Class of Stock [Line Items]
Preferred stock, shares authorized (shares)	22.0
Preferred stock, par value (dollars per share) \| $ / shares	$ 1.00
Common stock, authorized (shares)	437.5
Share-based Payment Arrangement
Class of Stock [Line Items]
Common stock, capital shares reserved for future issuance (shares)	26.0
Series A
Class of Stock [Line Items]
Common stock, capital shares reserved for future issuance (shares)	7.0

Shareholders' Equity - Treasury Stock (Details) - Treasury Stock - USD ($) shares in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2020	Jan. 31, 2021
Schedule of Common Stock and Treasury Stock [Line Items]
Authorized share repurchase program	$ 1,000
Share repurchase cost	600
Share repurchase fees	$ 0
Number of shares repurchased	24,691
Stock repurchase program, remaining authorized repurchase amount	$ 400
Subsequent Event
Schedule of Common Stock and Treasury Stock [Line Items]
Authorized share repurchase program		$ 100
Stock repurchase program, remaining authorized repurchase amount		$ 500

Shareholders' Equity - Common Stock and Treasury Stock Period Activity (Details) - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock, authorized (shares)	437,500,000
Common stock issued (shares)	198,386,000	214,621,000
Common stock outstanding (shares)	198,386,000	212,590,000
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, Beginning	214,621,000	231,690,000	254,613,000
Stock based compensation plans, net	1,390,000	1,310,000	1,103,000
Acquisition of Treasury stock	0	0	0
Cancellation of Treasury stock	(17,625,000)	(18,379,000)	(24,026,000)
Balance, Ending	198,386,000	214,621,000	231,690,000
Treasury Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, Beginning	2,031,000	2,067,000	0
Stock based compensation plans, net	0	0	0
Acquisition of Treasury stock	15,594,000	18,343,000	26,093,000
Cancellation of Treasury stock	(17,625,000)	(18,379,000)	(24,026,000)
Balance, Ending	0	2,031,000	2,067,000
Xerox Corporation
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock, authorized (shares)	1,000
Par value of common stock (dollars per share)	$ 1.00
Common stock issued (shares)	100
Common stock outstanding (shares)	100

Stock-Based Compensation - Narrative (Details) $ in Millions	12 Months Ended
	Dec. 31, 2020 USD ($) trading_day shares	Dec. 31, 2019 USD ($) shares	Dec. 31, 2018 USD ($)	Dec. 31, 2017
Stock-Based Compensation Details [Line Items]
Number of shares available for grant (shares)	11,000,000	13,000,000
Stock-based compensation expense, pre-tax \| $	$ 42	$ 50	$ 57
Income tax benefit recognized in earnings \| $	$ 11	$ 13	$ 14
Restricted Stock Units (RSUs)
Stock-Based Compensation Details [Line Items]
Performance period			3 years
Restricted Stock Units (RSUs) \| Graded vesting after year one of service period
Stock-Based Compensation Details [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting rights (percent)	25.00%
Performance period	1 year
Restricted Stock Units (RSUs) \| Graded vesting after year two of service period
Stock-Based Compensation Details [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting rights (percent)	25.00%
Performance period	2 years
Restricted Stock Units (RSUs) \| Graded vesting after year three of service period
Stock-Based Compensation Details [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting rights (percent)	50.00%
Performance period	3 years
Performance Shares
Stock-Based Compensation Details [Line Items]
Performance period	3 years	3 years	3 years	3 years
Approximation of grant date fair value	50.00%
Performance Shares \| Revenue
Stock-Based Compensation Details [Line Items]
Weighting of measurement components (percent)	25.00%
Performance Shares \| Free Cash Flow
Stock-Based Compensation Details [Line Items]
Weighting of measurement components (percent)	25.00%
Performance Shares \| Absolute Share Price
Stock-Based Compensation Details [Line Items]
Weighting of measurement components (percent)	50.00%
Performance Shares \| Performance-Based
Stock-Based Compensation Details [Line Items]
Performance share grant basis - performance		0.6667
Performance share maximum overachievement	100.00%
Performance-based metric performance period (years)			1 year
Time-based metric performance period (years)		2 years
Performance Shares \| Performance Based - Actual Results
Stock-Based Compensation Details [Line Items]
Performance-based metric performance period (years)	3 years
Performance Shares \| TSR
Stock-Based Compensation Details [Line Items]
Performance period	3 years	3 years	3 years
Performance share grant basis - TSR		0.3333
Total number of trading days of performance period \| trading_day	20
Performance Shares \| Minimum
Stock-Based Compensation Details [Line Items]
Performance shares entitlement of original award grant (percent)	0.00%	0.00%
Performance Shares \| Maximum
Stock-Based Compensation Details [Line Items]
Performance shares entitlement of original award grant (percent)	200.00%	200.00%
Equity Option \| Graded vesting after year one of service period
Stock-Based Compensation Details [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting rights (percent)	25.00%
Equity Option \| Graded vesting after year two of service period
Stock-Based Compensation Details [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting rights (percent)	25.00%
Equity Option \| Graded vesting after year three of service period
Stock-Based Compensation Details [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting rights (percent)	50.00%
Options outstanding, term (years)	10 years

Stock-Based Compensation - Measurement Inputs (Details) - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Performance Shares
Stock-Based Compensation Details [Line Items]
Term (years)	3 years	3 years	3 years	3 years
Granted (dollars per share)	$ 37.59	$ 19.46	$ 27.36
Equity Option
Stock-Based Compensation Details [Line Items]
Risk-free interest rate (percent)			2.63%
Dividend yield (percent)			3.25%
Historical volatility (percent)			27.25%
Expected term (years)			6 years 1 month 17 days
Weighted average fair value (dollars per share)			$ 5.71
TSR \| Performance Shares
Stock-Based Compensation Details [Line Items]
Term (years)	3 years	3 years	3 years
Risk-free interest rate (percent)	1.60%	2.51%	2.39%
Dividend yield (percent)	2.80%	3.97%	3.24%
Historical volatility (percent)	29.49%	32.95%	29.12%
Granted (dollars per share)	$ 41.28	$ 16.27	$ 32.01

Stock-Based Compensation - Payouts (Details)	12 Months Ended
Stock-Based Compensation - Payouts (Details)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
$40.00 and above
Stock-Based Compensation Details [Line Items]
Payout (percent of target)		200.00%
$45.00 and above
Stock-Based Compensation Details [Line Items]
Payout (percent of target)	200.00%
$35.00
Stock-Based Compensation Details [Line Items]
Payout (percent of target)		100.00%
$40.00
Stock-Based Compensation Details [Line Items]
Payout (percent of target)	100.00%
$30.00
Stock-Based Compensation Details [Line Items]
Payout (percent of target)		50.00%
$37.00
Stock-Based Compensation Details [Line Items]
Payout (percent of target)	50.00%
Below $37.00
Stock-Based Compensation Details [Line Items]
Payout (percent of target)	0.00%
Below $30.00
Stock-Based Compensation Details [Line Items]
Payout (percent of target)		0.00%
TSR \| Performance Shares \| 80th and above
Stock-Based Compensation Details [Line Items]
Payout (percent of target)			200.00%
TSR \| Performance Shares \| 50th
Stock-Based Compensation Details [Line Items]
Payout (percent of target)			100.00%
TSR \| Performance Shares \| 25th
Stock-Based Compensation Details [Line Items]
Payout (percent of target)			35.00%
TSR \| Performance Shares \| Below 25th
Stock-Based Compensation Details [Line Items]
Payout (percent of target)			0.00%

Stock-Based Compensation - Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Unrecognized Compensation	$ 64
Aggregate intrinsic value of award outstanding, options	$ 0
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Outstanding at January 1 (shares)	2,845	3,559	2,856
Outstanding at January 1 (dollars per share)	$ 26.87	$ 29.51	$ 30.65
Granted (shares)	2,028	1,366	1,595
Granted (dollars per share)	$ 27.85	$ 23.22	$ 27.82
Vested (shares)	(1,473)	(1,666)	(214)
Vested (dollars per share)	$ 28.85	$ 29.28	$ 30.39
Cancelled/Expired (shares)	(213)	(414)	(678)
Cancelled/Expired (dollars per share)	$ 28.39	$ 27.85	$ 30.04
Outstanding at December 31 (shares)	3,187	2,845	3,559
Outstanding at December 31 (dollars per share)	$ 26.48	$ 26.87	$ 29.51
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Unrecognized Compensation	$ 51
Remaining Weighted-Average Vesting Period (Years)	1 year
Aggregate intrinsic value of award outstanding	$ 74
Total Intrinsic Value(1)	33	$ 55	$ 6
Cash Received	0	0	0
Tax Benefit	$ 5	$ 11	$ 2
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Outstanding at January 1 (shares)	2,830	2,462	3,117
Outstanding at January 1 (dollars per share)	$ 24.99	$ 29.83	$ 31.54
Granted (shares)	901	1,433	1,060
Granted (dollars per share)	$ 37.59	$ 19.46	$ 27.36
Vested (shares)	(993)	(633)	(853)
Vested (dollars per share)	$ 31.94	$ 29.56	$ 32.59
Cancelled/Expired (shares)	(313)	(432)	(862)
Cancelled/Expired (dollars per share)	$ 26.22	$ 27.50	$ 30.26
Outstanding at December 31 (shares)	2,425	2,830	2,462
Outstanding at December 31 (dollars per share)	$ 26.67	$ 24.99	$ 29.83
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Unrecognized Compensation	$ 13
Remaining Weighted-Average Vesting Period (Years)	1 year 1 month 6 days
Aggregate intrinsic value of award outstanding	$ 56
Total Intrinsic Value(1)	18	$ 23	$ 21
Cash Received	0	0	0
Tax Benefit	$ 4	$ 6	$ 4
Stock options
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding at January 1 (shares)	861	1,022	0
Outstanding at January 1 (dollars per share)	$ 27.83	$ 27.84	$ 0
Granted (shares)	0	0	1,414
Granted (dollars per share)	$ 0	$ 0	$ 27.88
Canceled/expired (shares)	(60)	(92)	(392)
Canceled/expired (dollars per share)	$ 27.98	$ 27.92	$ 27.98
Exercised (shares)	(2)	(69)	0
Exercised (dollars per share)	$ 27.98	$ 27.98	$ 0
Outstanding at December 31 (shares)	799	861	1,022
Outstanding at December 31 (dollars per share)	$ 27.81	$ 27.83	$ 27.84
Exercisable at December 31 (shares)	470	233	39
Exercisable at December 31 (dollars per share)	$ 27.84	$ 27.83	$ 27.98
Cash Received	$ 0	$ 2	$ 0
Tax Benefit	0	0	0
Total Intrinsic Value(1)	$ 0	$ 1	$ 0
Restricted Stock Award
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Granted (shares)	351
Granted (dollars per share)	$ 28.51

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

1 Months Ended

12 Months Ended

Nov. 30, 2019

Dec. 31, 2020

Dec. 31, 2019

Dec. 31, 2018

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

Aggregate adjustment in period, pre-tax

$ 238

$ 53

$ (251)

Aggregate adjustment in period, net of tax

241

(242)

Divestiture - reclassification, pre-tax

Divestiture - reclassification, net of tax

Translation Adjustment Gains (Losses), Pre-tax

238

(251)

Translation Adjustment Gains (Losses), Net of Tax

^[1]

241

(242)

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

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

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

(9)

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

(7)

Other losses, pre-tax

(2)

Other losses, net of tax

(2)

Net Unrealized Gains (Losses), Pre-tax

(7)

Net Unrealized Gains (Losses), Net of Tax

(6)

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

117

(275)

273

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

(202)

198

Prior service amortization/curtailment, pre-tax

(80)

(81)

(26)

Prior service amortization/curtailment, net of tax

(60)

(61)

(20)

Actuarial loss amortization/settlement, pre-tax

138

156

252

Actuarial loss amortization/settlement, net of tax

104

118

190

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

(25)

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

(25)

Other (losses) gains, pre-tax

(63)

(21)

Other (losses) gains, net of tax

(61)

(21)

Divestiture - reclassification, pre-tax

148

Divestiture - reclassification, net of tax

148

Changes in Defined Benefit Plans Gains (Losses), Pre-tax

112

(65)

540

Changes in Defined Benefit Plans Gains (Losses), Net of Tax

^[1]

(10)

409

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

355

(2)

310

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

^[1]

$ 314

$ 183

Fuji Xerox Co., Ltd. and Xerox International Partners, The Sales | Discontinued Operations, Disposed of by Sale

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

Divestiture - reclassification, pre-tax

$ 165

[1]	Refer to Note 25 - Other Comprehensive Income (Loss) for gross components of Other Comprehensive Income, reclassification adjustments out of Accumulated Other Comprehensive Loss and related tax effects.

Other Comprehensive Income (Loss) - AOCL (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
AOCL [Abstract]
Accumulated other comprehensive loss	$ (3,332)	$ (3,646)	$ (3,565)
Cumulative translation adjustments
AOCL [Abstract]
Accumulated other comprehensive loss	(1,720)	(1,961)	(2,023)
Other unrealized gains (losses), net
AOCL [Abstract]
Accumulated other comprehensive loss	2	(2)	4
Benefit plans net actuarial losses and prior services credits
AOCL [Abstract]
Accumulated other comprehensive loss	$ 1,614	$ 1,683	1,546
Accounting Standards Update 2018-02 \| AOCL \| Cumulative Effect, Period of Adoption, Adjustment
AOCL [Abstract]
Reclassification of stranded tax effects resulting from the Tax Act			$ (127)

- Definition

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

+ References + Details

Earnings per Share - Reconciliation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Basic Earnings per Share:
Net Income from continuing operations attributable to Xerox Holdings	$ 192	$ 648	$ 306
Accrued dividends on preferred stock	(14)	(14)	(14)
Adjusted Net income from continuing operations available to common shareholders	178	634	292
Income from discontinued operations attributable to Xerox Holdings, net of tax	0	705	55
Adjusted Net income available to common shareholders	$ 178	$ 1,339	$ 347
Weighted average common shares outstanding	208,983	221,969	248,707
Continuing operations (in dollars per share)	$ 0.85	$ 2.86	$ 1.17
Discontinued operations (in dollars per share)	0	3.17	0.23
Basic Earnings per Share	$ 0.85	$ 6.03	$ 1.40
Diluted Earnings per Share:
Net Income from continuing operations attributable to Xerox Holdings	$ 192	$ 648	$ 306
Accrued dividends on preferred stock	(14)	0	(14)
Adjusted Net income from continuing operations available to common shareholders	178	648	292
Income from discontinued operations attributable to Xerox Holdings, net of tax	0	705	55
Adjusted Net income available to common shareholders	$ 178	$ 1,353	$ 347
Weighted-average common shares outstanding	208,983	221,969	248,707
Common shares issuable with respect to:
Adjusted Weighted average common shares outstanding	211,437	233,169	251,660
Continuing operations (in dollars per share)	$ 0.84	$ 2.78	$ 1.16
Discontinued operations (in dollars per share)	0	3.02	0.22
Diluted Earnings per Share	$ 0.84	$ 5.80	$ 1.38
Stock options
Common shares issuable with respect to:
Stock options, Restricted stock and performance shares	15	55	0
Restricted stock and performance shares
Common shares issuable with respect to:
Stock options, Restricted stock and performance shares	2,439	4,403	2,953
Convertible preferred stock
Common shares issuable with respect to:
Convertible preferred stock, shares	0	6,742	0

Earnings per Share - Anti-Dilutive Securities (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total Anti-Dilutive Securities	10,699	2,077	10,832
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total Anti-Dilutive Securities	784	805	1,022
Restricted stock and performance shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total Anti-Dilutive Securities	3,173	1,272	3,068
Convertible preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total Anti-Dilutive Securities	6,742	0	6,742

Earnings per Share - Dividends per Common Share (Details) - $ / shares	3 Months Ended												12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Earnings Per Share [Abstract]
Dividends per common share (in dollars per share)	$ 0.25	$ 0.25	$ 0.25	$ 0.25	$ 0.25	$ 0.25	$ 0.25	$ 0.25	$ 0.25	$ 0.25	$ 0.25	$ 0.25	$ 1.00	$ 1.00	$ 1.00

Schedule II Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	$ 144	$ 148	$ 167
Additions charged to provision	116	46	36
Amounts (credited) charged to other income statement accounts	0	3	4
Deductions and other, net of recoveries	(58)	(53)	(59)
Balance at end of period	202	144	148
Accounts Receivable
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	55	56	59
Additions charged to provision	35	18	12
Amounts (credited) charged to other income statement accounts	0	0	2
Deductions and other, net of recoveries	(21)	(19)	(17)
Balance at end of period	69	55	56
Finance Receivables
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	89	92	108
Additions charged to provision	81	28	24
Amounts (credited) charged to other income statement accounts	0	3	2
Deductions and other, net of recoveries	(37)	(34)	(42)
Balance at end of period	133	89	92
Deferred Tax Assets
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	399	397	435
Additions charged to provision	25	16	3
Amounts (credited) charged to other income statement accounts	(28)	(14)	(41)
Balance at end of period	396	399	397
Xerox Corporation
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	144	148	167
Additions charged to provision	116	46	36
Amounts (credited) charged to other income statement accounts	0	3	4
Deductions and other, net of recoveries	(58)	(53)	(59)
Balance at end of period	202	144	148
Xerox Corporation \| Accounts Receivable
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	55	56	59
Additions charged to provision	35	18	12
Amounts (credited) charged to other income statement accounts	0	0	2
Deductions and other, net of recoveries	(21)	(19)	(17)
Balance at end of period	69	55	56
Xerox Corporation \| Finance Receivables
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	89	92	108
Additions charged to provision	81	28	24
Amounts (credited) charged to other income statement accounts	0	3	2
Deductions and other, net of recoveries	(37)	(34)	(42)
Balance at end of period	133	89	92
Xerox Corporation \| Deferred Tax Assets
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	399	397	435
Additions charged to provision	25	16	3
Amounts (credited) charged to other income statement accounts	(28)	(14)	(41)
Balance at end of period	$ 396	$ 399	$ 397