0001770450-21-000025 | 10-Q | XBRL Viewer

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Cover Page	3 Months Ended
Cover Page	Mar. 31, 2021 shares
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2021
Document Transition Report	false
Entity Registrant Name	XEROX HOLDINGS CORPORATION
Entity Incorporation, State or Country Code	NY
Entity File Number	001-39013
Entity Tax Identification Number	83-3933743
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001770450
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Entity Address, Address Line One	P.O. Box 4505
Entity Address, Address Line Two	201 Merritt 7
Entity Address, City or Town	Norwalk
Entity Address, State or Province	CT
Entity Address, Postal Zip Code	06851-1056
City Area Code	(203)
Local Phone Number	849-5216
Title of 12(b) Security	Common Stock, $1 par value
Trading Symbol	XRX
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	191,947,343
XEROX CORPORATION
Entity Information [Line Items]
Entity Registrant Name	XEROX CORPORATION
Entity Incorporation, State or Country Code	NY
Entity File Number	001-04471
Entity Tax Identification Number	16-0468020
Entity Central Index Key	0000108772
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
Entity Shell Company	false

Condensed Consolidated Statements of Income (Loss) (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenues
Total Revenues	$ 1,710	$ 1,860
Costs and Expenses
Cost of financing	28	30
Research, development and engineering expenses	74	84
Selling, administrative and general expenses	448	541
Restructuring and related costs, net	17	41
Amortization of intangible assets	15	11
Transaction and related costs, net	0	17
Other expenses, net	4	23
Total Costs and Expenses	1,657	1,865
Income (Loss) before Income Taxes and Equity Income	53	(5)
Income tax expense (benefit)	14	(1)
Equity in net income of unconsolidated affiliates	0	2
Net Income (Loss)	39	(2)
Less: Net income attributable to noncontrolling interests	0	0
Net Income (Loss) Attributable to Xerox Holdings/Xerox	$ 39	$ (2)
Basic Earnings (Loss) per Share
Basic earnings (loss) per share (USD per share)	$ 0.18	$ (0.03)
Diluted Earnings (Loss) per Share
Diluted earnings (loss) per share (USD per share)	$ 0.18	$ (0.03)
Sales
Revenues
Total Revenues	$ 602	$ 565
Costs and Expenses
Cost of sales and services	420	387
Services, maintenance and rentals
Revenues
Total Revenues	1,053	1,236
Costs and Expenses
Cost of sales and services	651	731
Financing
Revenues
Total Revenues	55	59
XEROX CORPORATION
Revenues
Total Revenues	1,710	1,860
Costs and Expenses
Cost of financing	28	30
Research, development and engineering expenses	74	84
Selling, administrative and general expenses	447	541
Restructuring and related costs, net	17	41
Amortization of intangible assets	14	11
Transaction and related costs, net	0	17
Other expenses, net	4	23
Total Costs and Expenses	1,655	1,865
Income (Loss) before Income Taxes and Equity Income	55	(5)
Income tax expense (benefit)	14	(1)
Equity in net income of unconsolidated affiliates	0	2
Net Income (Loss)	41	(2)
Less: Net income attributable to noncontrolling interests	0	0
Net Income (Loss) Attributable to Xerox Holdings/Xerox	41	(2)
XEROX CORPORATION \| Sales
Revenues
Total Revenues	602	565
Costs and Expenses
Cost of sales and services	420	387
XEROX CORPORATION \| Services, maintenance and rentals
Revenues
Total Revenues	1,053	1,236
Costs and Expenses
Cost of sales and services	651	731
XEROX CORPORATION \| Financing
Revenues
Total Revenues	$ 55	$ 59

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

3 Months Ended

Mar. 31, 2021

Mar. 31, 2020

Net Income (Loss)

$ 39

$ (2)

Less: Net income attributable to noncontrolling interests

Net Income (Loss) Attributable to Xerox Holdings/Xerox

(2)

Other Comprehensive (Loss) Income, Net

Translation adjustments, net

^[1]

(51)

(197)

Unrealized (losses) gains, net

^[1]

(7)

Changes in defined benefit plans, net

^[1]

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

^[1]

(3)

(138)

Comprehensive Income (Loss), Net

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

(140)

XEROX CORPORATION

Net Income (Loss)

(2)

Less: Net income attributable to noncontrolling interests

Net Income (Loss) Attributable to Xerox Holdings/Xerox

(2)

Other Comprehensive (Loss) Income, Net

Translation adjustments, net

^[2]

(51)

(197)

Unrealized (losses) gains, net

^[2]

(7)

Changes in defined benefit plans, net

^[2]

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

^[2]

(3)

(138)

Comprehensive Income (Loss), Net

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

$ 38

$ (140)

[1]	Refer to Note 17 - Other Comprehensive Income (Loss) for gross components of Other comprehensive loss, net, reclassification adjustments out of Accumulated other comprehensive loss and related tax effects.
[2]	Refer to Note 17 - Other Comprehensive Income (Loss) for gross components of Other comprehensive loss, net, reclassification adjustments out of Accumulated other comprehensive loss and related tax effects.

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) shares in Thousands, $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Assets
Cash and cash equivalents	$ 2,379	$ 2,625
Accounts receivable (net of allowance)	781	883
Billed portion of finance receivables (net of allowance)	92	99
Finance receivables, net	1,065	1,082
Inventories	841	843
Other current assets	262	251
Total current assets	5,420	5,783
Finance receivables due after one year (net of allowance)	1,920	1,984
Equipment on operating leases, net	277	296
Land, buildings and equipment, net	393	407
Intangible assets, net	223	237
Goodwill	4,075	4,071
Deferred tax assets	510	508
Other long-term assets	1,454	1,455
Total Assets	14,272	14,741
Liabilities and Equity
Short-term debt and current portion of long-term debt	678	394
Accounts payable	932	983
Accrued compensation and benefits costs	241	261
Accrued expenses and other current liabilities	794	840
Total current liabilities	2,645	2,478
Long-term debt	3,674	4,050
Pension and other benefit liabilities	1,473	1,566
Post-retirement medical benefits	339	340
Other long-term liabilities	498	497
Total Liabilities	8,629	8,931
Commitments and Contingencies (See Note 19)
Convertible Preferred Stock	214	214
Common stock	199	198
Additional paid-in capital	2,456	2,445
Treasury stock, at cost	(162)	0
Retained earnings	6,267	6,281
Accumulated other comprehensive loss	(3,335)	(3,332)
Xerox Holdings/Xerox shareholders’ equity	5,425	5,592
Noncontrolling interests	4	4
Total Equity	5,429	5,596
Total Liabilities and Equity	$ 14,272	$ 14,741
Shares of common stock issued	198,651	198,386
Treasury stock	(6,704)	0
Shares of Common Stock Outstanding	191,947	198,386
XEROX CORPORATION
Assets
Cash and cash equivalents	$ 2,379	$ 2,625
Accounts receivable (net of allowance)	781	883
Billed portion of finance receivables (net of allowance)	92	99
Finance receivables, net	1,065	1,082
Inventories	841	843
Other current assets	263	251
Total current assets	5,421	5,783
Finance receivables due after one year (net of allowance)	1,920	1,984
Equipment on operating leases, net	277	296
Land, buildings and equipment, net	393	407
Intangible assets, net	216	229
Goodwill	4,072	4,068
Deferred tax assets	510	508
Other long-term assets	1,455	1,455
Total Assets	14,264	14,730
Liabilities and Equity
Short-term debt and current portion of long-term debt	678	394
Accounts payable	932	983
Accrued compensation and benefits costs	241	261
Accrued expenses and other current liabilities	736	750
Total current liabilities	2,587	2,388
Long-term debt	2,180	2,557
Related party debt	1,494	0
Pension and other benefit liabilities	1,473	1,566
Post-retirement medical benefits	339	340
Other long-term liabilities	497	494
Total Liabilities	8,570	7,345
Commitments and Contingencies (See Note 19)
Additional paid-in capital	3,351	4,879
Retained earnings	5,674	5,834
Accumulated other comprehensive loss	(3,335)	(3,332)
Xerox Holdings/Xerox shareholders’ equity	5,690	7,381
Noncontrolling interests	4	4
Total Equity	5,694	7,385
Total Liabilities and Equity	$ 14,264	$ 14,730

Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Accounts receivable, allowance for credit loss, current	$ 68	$ 69
Billed portion of finance receivables, net	4	4
Financing receivables, allowance for credit loss, noncurrent	131	129
XEROX CORPORATION
Accounts receivable, allowance for credit loss, current	68	69
Billed portion of finance receivables, net	4	4
Financing receivables, allowance for credit loss, noncurrent	$ 131	$ 129

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash Flows from Operating Activities
Net Income (Loss)	$ 39	$ (2)
Adjustments required to reconcile Net income (loss) to Cash flows from operating activities
Depreciation and amortization	86	94
Provisions	20	80
Net gain on sales of businesses and assets	0	(1)
Stock-based compensation	16	11
Restructuring and asset impairment charges	21	29
Payments for restructurings	(27)	(35)
Defined benefit pension cost	0	24
Contributions to defined benefit pension plans	(35)	(33)
Decrease in accounts receivable and billed portion of finance receivables	92	166
Increase in inventories	(18)	(126)
Increase in equipment on operating leases	(28)	(32)
Decrease in finance receivables	37	93
Decrease (increase) in other current and long-term assets	18	(16)
(Decrease) increase in accounts payable	(31)	51
Decrease in accrued compensation	(36)	(108)
Decrease in other current and long-term liabilities	(35)	(38)
Net change in income tax assets and liabilities	6	(10)
Net change in derivative assets and liabilities	3	8
Other operating, net	(11)	18
Net cash provided by operating activities	117	173
Cash Flows from Investing Activities
Cost of additions to land, buildings, equipment and software	(17)	(23)
Proceeds from sales of businesses and assets	0	2
Acquisitions, net of cash acquired	0	(193)
Net cash used in investing activities	(17)	(214)
Cash Flows from Financing Activities
Proceeds from issuance of long-term debt	0	2
Payments on long-term debt	(95)	0
Dividends	(54)	(58)
Payments to acquire treasury stock, including fees	(162)	0
Other financing, net	(7)	(4)
Net cash used in financing activities	(318)	(60)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(12)	(29)
Decrease in cash, cash equivalents and restricted cash	(230)	(130)
Cash, cash equivalents and restricted cash at beginning of period	2,691	2,795
Cash, Cash Equivalents and Restricted Cash at End of Period	2,461	2,665
XEROX CORPORATION
Cash Flows from Operating Activities
Net Income (Loss)	41	(2)
Adjustments required to reconcile Net income (loss) to Cash flows from operating activities
Depreciation and amortization	85	94
Provisions	20	80
Net gain on sales of businesses and assets	0	(1)
Stock-based compensation	16	11
Restructuring and asset impairment charges	21	29
Payments for restructurings	(27)	(35)
Defined benefit pension cost	0	24
Contributions to defined benefit pension plans	(35)	(33)
Decrease in accounts receivable and billed portion of finance receivables	92	166
Increase in inventories	(18)	(126)
Increase in equipment on operating leases	(28)	(32)
Decrease in finance receivables	37	93
Decrease (increase) in other current and long-term assets	18	(16)
(Decrease) increase in accounts payable	(31)	51
Decrease in accrued compensation	(36)	(108)
Decrease in other current and long-term liabilities	(36)	(38)
Net change in income tax assets and liabilities	6	(10)
Net change in derivative assets and liabilities	3	8
Other operating, net	(11)	18
Net cash provided by operating activities	117	173
Cash Flows from Investing Activities
Cost of additions to land, buildings, equipment and software	(17)	(23)
Proceeds from sales of businesses and assets	0	2
Acquisitions, net of cash acquired	0	(193)
Net cash used in investing activities	(17)	(214)
Cash Flows from Financing Activities
Proceeds from issuance of long-term debt	0	2
Payments on long-term debt	(95)	0
Distributions to parent	(220)	(58)
Other financing, net	(3)	(4)
Net cash used in financing activities	(318)	(60)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(12)	(29)
Decrease in cash, cash equivalents and restricted cash	(230)	(130)
Cash, cash equivalents and restricted cash at beginning of period	2,691	2,795
Cash, Cash Equivalents and Restricted Cash at End of Period	$ 2,461	$ 2,665

Basis of Presentation	3 Months Ended
Basis of Presentation	Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation References to “Xerox Holdings” refer to Xerox Holdings Corporation and its consolidated subsidiaries while references to “Xerox” refer to Xerox Corporation and its consolidated subsidiaries. References herein to “we,” “us,” “our,” the “Company” refer collectively to both Xerox Holdings and Xerox unless the context suggests otherwise. 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 its subsidiaries. The accompanying unaudited Condensed Consolidated Financial Statements and footnotes represent the respective, consolidated results and financial results of Xerox Holdings and Xerox and all respective companies that each registrant directly or indirectly controls, either through majority ownership or otherwise. This is a combined report of Xerox Holdings and Xerox, which includes separate unaudited Condensed Consolidated Financial Statements for each registrant. The accompanying unaudited Condensed Consolidated Financial Statements of both Xerox Holdings and Xerox have been prepared in accordance with the accounting policies described in the Combined 2020 Annual Report on Form 10-K ("2020 Annual Report"), except as noted herein, and the interim reporting requirements of Form 10-Q. Accordingly, certain information and note disclosures normally included in our annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted. You should read these Condensed Consolidated Financial Statements in conjunction with the Consolidated Financial Statements included in the Combined 2020 Annual Report. In our opinion, all adjustments, which are necessary for a fair statement of financial position, operating results and cash flows for the interim periods presented, have been made. These adjustments consist of normal recurring items. Interim results of operations are not necessarily indicative of the results of the full year. As of March 31, 2021, although we did see certain improvement in our financial results as businesses gained confidence in the progress to control the COVID-19 pandemic and resumed investments in new printing technology and services, the pandemic continues to progress and impact our financial results. Accordingly, many of our estimates and assumptions continue to require an increased level of judgment and may have to change in the future as events continue to evolve and additional information becomes available. For convenience and ease of reference, we refer to the financial statement caption “Income (Loss) before Income Taxes and Equity Income” as “pre-tax income (loss)”. Notes to the Condensed Consolidated Financial Statements reflect the activity for both Xerox Holdings and Xerox for all periods presented, unless otherwise noted. Goodwill Interim Impairment Evaluation We perform our annual goodwill impairment testing in the fourth quarter of each year. After completing our quantitative impairment review in the fourth quarter 2020, we concluded that Goodwill was not impaired. Based on various forecast models, which we believe reflected the inherent uncertainty of the future, we estimated that the excess of fair value over carrying value ranged between 15% and 20%. During the quarter ended March 31, 2021, although business performance continues to improve, we determined that the continued negative impacts on our current operations resulting from the COVID-19 pandemic as well as a market capitalization that remains less than book value required us to qualitatively assess whether a triggering event had occurred and whether it was more likely than not that our goodwill was impaired as of March 31, 2021. Based on our interim qualitative assessment as of March 31, 2021, we determined that it was more-likely-than-not that the fair value of the Company was greater than the net book value and that we did not have a “triggering event” requiring a quantitative or Step 1 assessment of goodwill. Our review of macroeconomic and industry considerations, as well as the Company's financial results for the first quarter 2021 and projections for the full year 2021, were consistent with the expectations and sensitivities assessed as part of our review performed in the fourth quarter 2020. Further, although our market capitalization remained below our net book value, the Company's market capitalization did improve in the first quarter 2021. If assumptions or estimates in the fair value calculations change or if future cash flows vary from what was expected, including those assumptions relating to the duration and severity of the financial impact from the COVID-19 pandemic, this may impact the impairment analysis and could reduce the underlying cash flows used to estimate fair values and result in a decline in fair value that may trigger future impairment charges.

Recent Accounting Pronouncements	3 Months Ended
Recent Accounting Pronouncements	Mar. 31, 2021
Accounting Standards Update and Change in Accounting Principle [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements Xerox Holdings and Xerox consider the applicability and impact of all Accounting Standards Updates (ASUs) issued by the Financial Accounting Standards Board (FASB). The ASUs listed below apply to both registrants. ASUs not listed below were assessed and determined to be not applicable to the Condensed Consolidated Financial Statements of either registrant. Accounting Standard Updates to be Adopted: Debt In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40). This update simplifies the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments and convertible preferred stock. This update also amends the guidance for the derivatives scope exception for contracts in an entity's own equity to reduce form-over-substance-based accounting conclusions and requires the application of the if-converted method for calculating diluted earnings per share. This update is effective for our fiscal year beginning January 1, 2022. We are currently evaluating the impact of the adoption of this standard on the Company’s consolidated financial statements and related disclosures. Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting, 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. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, which provided clarification guidance to ASU 2020-04. These ASUs were effective commencing with our quarter ended March 31, 2020 through December 31, 2022. There has been no impact to date as a result of ASU 2020-04 or ASU 2021-01 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. Accounting Standard Updates Adopted in 2021: 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. We adopted this update effective for our fiscal year beginning January 1, 2021. The adoption did not have nor is expected to have a material impact on our results of operations, financial position or disclosures. Other Updates In 2021 and 2020, the FASB also issued the following ASUs, which impact the Company but did not have or are not expected to have a material impact on our financial condition, results of operations or cash flows upon adoption. Those updates are as follows: •Investments: ASU 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323) and Derivatives and Hedging (Topic 815). This update is effective for our fiscal year beginning January 1, 2021.

- Definition

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

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+ Details

Revenue

3 Months Ended

Mar. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue

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


	Three Months Ended March 31,
		2021		2020
Primary geographical markets(1):
United States		$	974	$	1,114
Europe		499		481
Canada		93		108
Other		144		157
Total Revenues		$	1,710	$	1,860

Major product and services lines:
Equipment		$	381	$	325
Supplies, paper and other sales		221		240
Maintenance agreements(2)		435		529
Service arrangements(3)		489		566
Rental and other		129		141
Financing		55		59

Total Revenues		$	1,710	$	1,860

Sales channels:

Direct equipment lease(4)		$	147	$	126
Distributors & resellers(5)		254		223
Customer direct		201		216
Total Sales		$	602	$	565

_____________

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

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

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

(4)Primarily reflects 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 $126 and $130 at March 31, 2021 and December 31, 2020, respectively. The majority of the balance at March 31, 2021 is expected to be amortized to revenue over approximately the next 30 months.

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

Incremental direct costs are as follows:


	Three Months Ended March 31,
		2021		2020
Incremental direct costs of obtaining a contract		$	13	$	15
Amortization of incremental direct costs		19		21

The balance of deferred incremental direct costs net of accumulated amortization at March 31, 2021 and December 31, 2020 was $140 and $145, 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 provide inducements to certain customers in various forms, including contractual credits, which are capitalized and amortized as a reduction of revenue over the term of the contract. As of March 31, 2021 and December 31, 2020 amounts deferred associated with contract fulfillment costs and inducements were $17 and $13, respectively. The related amortization was $1 and $1 for the three months ended March 31, 2021 and 2020, 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
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-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Subparagraph (b)(2)
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Lessor

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

Lessor

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

The components of lease income are as follows:


		Three Months Ended March 31,
	Location in Statements of Income (Loss)		2021		2020
Revenue from sales type leases	Sales		$	147	$	126


Interest income on lease receivables	Financing		55		59


Lease income - operating leases	Services, maintenance and rentals		67		86
Variable lease income	Services, maintenance and rentals		15		22
Total Lease income			$	284	$	293

Profit at lease commencement on sales type leases was estimated to be $56 and $43 for the three months ended March 31, 2021 and 2020, respectively.

Lessor

The components of lease income are as follows:


		Three Months Ended March 31,
	Location in Statements of Income (Loss)		2021		2020
Revenue from sales type leases	Sales		$	147	$	126


Interest income on lease receivables	Financing		55		59


Lease income - operating leases	Services, maintenance and rentals		67		86
Variable lease income	Services, maintenance and rentals		15		22
Total Lease income			$	284	$	293

Profit at lease commencement on sales type leases was estimated to be $56 and $43 for the three months ended March 31, 2021 and 2020, respectively.

Supplementary Financial Information

3 Months Ended

Mar. 31, 2021

Supplemental Financial Information [Abstract]

Supplementary Financial Information

Cash, Cash Equivalents and Restricted Cash

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


	March 31, 2021		December 31, 2020
Cash and cash equivalents	$	2,379	$	2,625
Restricted cash
Litigation deposits in Brazil	38		42
Escrow and cash collections related to secured borrowing arrangements(1)	43		22
Other restricted cash	1		2
Total Restricted cash	82		66
Cash, cash equivalents and restricted cash	$	2,461	$	2,691

_____________

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

Restricted cash primarily relates to cash collections on finance receivables that were pledged for secured borrowings as well as escrow cash deposits made in Brazil associated with ongoing litigation. As more fully discussed in Note 19 - Contingencies and Litigation, various litigation matters in Brazil require us to make cash deposits to escrow as a condition of continuing the litigation. Restricted cash amounts are classified in our Condensed Consolidated Balance Sheets based on when the cash will be contractually or judicially released.

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


	March 31, 2021		December 31, 2020
Other current assets	$	44	$	23
Other long-term assets	38		43
Total Restricted cash	$	82	$	66

Supplemental Cash Flow Information

Summarized cash flow information is as follows:


	Three Months Ended March 31,
		2021		2020
Provision for receivables		$	11	$	74
Provision for inventory		9		6
Provision for product warranty		2		2
Depreciation of buildings and equipment		19		21
Depreciation and obsolescence of equipment on operating leases		42		51
Amortization of internal use software		10		11

Amortization of acquired intangible assets(1)		15		11
Amortization of customer contract costs(2)		20		22
Cost of additions to land, buildings and equipment		8		18
Cost of additions to internal use software		9		5
Common stock dividends - Xerox Holdings Corporation		50		54
Preferred stock dividends - Xerox Holdings Corporation		4		4



Repurchases related to stock-based compensation - Xerox Holdings Corporation		4		7

_____________

(1)Amortization of acquired intangible assets of Xerox is $14 for the three months ended March 31, 2021.

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

Accounts Receivable, Net

3 Months Ended

Mar. 31, 2021

Receivables [Abstract]

Accounts Receivable, Net

Accounts receivable, net were as follows:


	March 31, 2021		December 31, 2020
Invoiced	$	637	$	735
Accrued(1)	212		217
Allowance for doubtful accounts	(68)		(69)
Accounts receivable, net	$	781	$	883

_____________

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

The allowance for doubtful accounts was as follows:


	2021		2020
Balance at December 31st	$	69	$	55
Provision	4		8
Charge-offs	(5)		(2)
Recoveries and other(1)	—		(1)
Balance at March 31st	$	68	$	60

_____________

(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. 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 the allowance for doubtful accounts as a percent of gross accounts receivable was 8.0% at March 31, 2021 and 7.2% at December 31, 2020. The allowance for doubtful accounts as a percent of gross accounts receivable remain at an elevated level as compared to historical levels primarily as a result of the macroeconomic and market disruption caused by COVID-19.

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, $93 and $136 remained uncollected as of March 31, 2021 and December 31, 2020, respectively.

Accounts receivable sales activity was as follows:


	Three Months Ended March 31,
		2021		2020
Accounts receivable sales(1)		$	107	$	53

____________

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

Finance Receivables, Net

Finance receivables include sales-type leases and installment loans arising from the marketing of our equipment. These receivables are typically collateralized by a security interest in the underlying assets.

Finance receivables, net were as follows:


	March 31, 2021		December 31, 2020
Gross receivables	$	3,596	$	3,691
Unearned income	(384)		(393)
Subtotal	3,212		3,298
Residual values	—		—
Allowance for doubtful accounts	(135)		(133)
Finance receivables, net	3,077		3,165
Less: Billed portion of finance receivables, net	92		99
Less: Current portion of finance receivables not billed, net	1,065		1,082
Finance receivables due after one year, net	$	1,920	$	1,984

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.

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 the allowance for doubtful credit losses as a percentage of gross finance receivables (net of unearned income) was 4.2% at March 31, 2021 and 4.0% at December 31, 2020. In determining the level of reserve required we had to critically assess current and forecasted economic conditions in light of the COVID-19 pandemic to ensure we objectively included those expected impacts in the determination of our reserve. Our assessment also included a review of current portfolio credit metrics and the level of write-offs incurred over the past year of the COVID-19 pandemic.

The allowance for doubtful accounts and provision for credit losses represents an estimate of the losses expected to be incurred from the Company's finance receivable portfolio. The level of the allowance is determined on a collective basis by applying projected loss rates to our different portfolios by country, which represent our portfolio segments. This is the level at which we develop and document our methodology to determine the allowance for credit losses. This projected loss rates are primarily based upon historical loss experience adjusted for judgments about the probable effects of relevant observable data including current and future economic conditions as well as delinquency trends, resolution rates, the aging of receivables, credit quality indicators and the financial health of specific customer classes or groups.

The allowance for doubtful finance receivables is inherently more difficult to estimate than the allowance for trade accounts receivable because the underlying lease portfolio has an average maturity, at any time, of approximately two to three years and contains past due billed amounts, as well as unbilled amounts. We consider all available information in our quarterly assessments of the adequacy of the allowance for doubtful accounts. We believe our estimates, including any qualitative adjustments, are reasonable and have considered all reasonably available information about past events, current conditions, and reasonable and supportable forecasts of future events and economic conditions. The identification of account-specific exposure is not a significant factor in establishing the allowance for doubtful finance receivables. Our policy and methodology used to establish our allowance for doubtful accounts has been consistently applied over all periods presented.

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

The first quarter 2020 reflected an incremental $60 provision to cover estimated write-offs on our finance receivable portfolio from the economic disruption caused by the COVID-19 pandemic. Subsequent to the first quarter of 2020 provision and through the first quarter of 2021, actual write-offs incurred to date have lagged expectations but

remain in line with our original projections over the life of the lease portfolio and consistent with future expectations regarding our estimated impacts from the COVID-19 pandemic. Accordingly, our total reserve as a percent of receivables has remained fairly consistent subsequent to the first quarter 2020 charge at around 4%.

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


	United States		Canada		EMEA(1)		Total
Balance at December 31, 2020	$	77	$	15	$	41	$	133
Provision	2		1		3		6
Charge-offs	(2)		—		(1)		(3)
Recoveries and other(2)	1		—		(2)		(1)
Balance at March 31, 2021	$	78	$	16	$	41	$	135









Finance receivables as of March 31, 2021 collectively evaluated for impairment (3)	$	1,806	$	288	$	1,118	$	3,212

Balance at December 31, 2019	$	59	$	10	$	20	$	89
Provision	35		6		25		66
Charge-offs	(3)		(1)		(4)		(8)
Recoveries and other(2)	—		—		(1)		(1)
Balance at March 31, 2020	$	91	$	15	$	40	$	146









Finance receivables as of March 31, 2020 collectively evaluated for impairment(3)	$	1,866	$	289	$	1,132	$	3,287

_____________

(1)Includes developing market countries.

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

(3)Total Finance receivables exclude the allowance for credit losses of $135 and $146 at March 31, 2021 and 2020, 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 primarily includes leases originated through our XBS sales channel that utilizes a combination of internal and third party leasing in its lease arrangements with end customers. Indirect also includes lease financing to end-user customers who purchased equipment we sold to distributors or resellers.

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

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

•Average Credit Risk: This rating includes accounts with average credit risk that are more susceptible to loss in the event of adverse business or economic conditions. This rating generally equates to a BB S&P rating. Although we experience higher loss rates associated with this customer class, we believe the risk is somewhat mitigated by the fact that our leases are fairly well dispersed across a large and diverse customer base. In addition, the higher loss rates are largely offset by the higher rates of return we obtain with such leases. Loss rates in this category in the normal course are generally in the range of 2% to 5%.

•High Credit Risk: This rating includes accounts that have marginal credit risk such that the customer’s ability to make repayment is impaired or may likely become impaired. We use numerous strategies to mitigate risk including higher rates of interest, prepayments, personal guarantees, etc. Accounts in this category include customers who were downgraded during the term of the lease from low and average credit risk evaluation when the lease was originated. Accordingly, there is a distinct possibility for a loss of principal and interest or customer default. The loss rates in this category in the normal course are generally in the range of 7% to 10%.

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

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


	March 31, 2021
	2021		2020		2019		2018		2017		Prior		Total Finance Receivables
United States (Direct):
Low Credit Risk	$	46	$	154	$	134	$	111	$	56	$	21	$	522
Average Credit Risk	17		53		89		43		20		6		228
High Credit Risk	18		87		39		24		12		5		185
Total	$	81	$	294	$	262	$	178	$	88	$	32	$	935

United States (Indirect):
Low Credit Risk	$	57	$	194	$	140	$	69	$	26	$	4	$	490
Average Credit Risk	42		110		99		56		24		5		336
High Credit Risk	9		16		8		8		3		1		45
Total	$	108	$	320	$	247	$	133	$	53	$	10	$	871

Canada
Low Credit Risk	$	11	$	36	$	31	$	21	$	7	$	3	$	109
Average Credit Risk	10		44		36		23		15		4		132
High Credit Risk	3		16		10		9		7		2		47
Total	$	24	$	96	$	77	$	53	$	29	$	9	$	288

EMEA(1)
Low Credit Risk	$	65	$	176	$	156	$	109	$	46	$	14	$	566
Average Credit Risk	52		153		138		89		38		12		482
High Credit Risk	7		19		21		12		8		3		70
Total	$	124	$	348	$	315	$	210	$	92	$	29	$	1,118







Total Finance Receivables
Low Credit Risk	$	179	$	560	$	461	$	310	$	135	$	42	$	1,687
Average Credit Risk	121		360		362		211		97		27		1,178
High Credit Risk	37		138		78		53		30		11		347
Total	$	337	$	1,058	$	901	$	574	$	262	$	80	$	3,212


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

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

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

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







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

_____________

(1)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:


	March 31, 2021
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Direct	$	30	$	7	$	8	$	45	$	890	$	935	$	70
Indirect	18		4		3		25		846		871		—






Total United States	48		11		11		70		1,736		1,806		70
Canada	6		2		1		9		279		288		13





EMEA(1)	12		3		2		17		1,101		1,118		17

Total	$	66	$	16	$	14	$	96	$	3,116	$	3,212	$	100

	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

_____________

(1)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 March 31, 2021 the SPE holds $248 of total Finance receivables, net, which are included in our Condensed 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 March 31, 2021 the SPE holds $543 of total Finance receivables, net, which are included in our Condensed Consolidated Balance Sheet as collateral for the secured loan agreement.

Refer to Note 11 - Debt, for additional information related to this arrangement including the related secured loan agreement.

Finance Receivables, Net

3 Months Ended

Mar. 31, 2021

Receivables [Abstract]

Finance Receivables, Net

Accounts Receivable, Net

Accounts receivable, net were as follows:


	March 31, 2021		December 31, 2020
Invoiced	$	637	$	735
Accrued(1)	212		217
Allowance for doubtful accounts	(68)		(69)
Accounts receivable, net	$	781	$	883

_____________

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

The allowance for doubtful accounts was as follows:


	2021		2020
Balance at December 31st	$	69	$	55
Provision	4		8
Charge-offs	(5)		(2)
Recoveries and other(1)	—		(1)
Balance at March 31st	$	68	$	60

_____________

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

Accounts Receivable Sales Arrangements

Of the accounts receivable sold and derecognized from our balance sheet, $93 and $136 remained uncollected as of March 31, 2021 and December 31, 2020, respectively.

Accounts receivable sales activity was as follows:


	Three Months Ended March 31,
		2021		2020
Accounts receivable sales(1)		$	107	$	53

____________

Finance Receivables, Net

Finance receivables, net were as follows:


	March 31, 2021		December 31, 2020
Gross receivables	$	3,596	$	3,691
Unearned income	(384)		(393)
Subtotal	3,212		3,298
Residual values	—		—
Allowance for doubtful accounts	(135)		(133)
Finance receivables, net	3,077		3,165
Less: Billed portion of finance receivables, net	92		99
Less: Current portion of finance receivables not billed, net	1,065		1,082
Finance receivables due after one year, net	$	1,920	$	1,984

Finance Receivables – Allowance for Credit Losses and Credit Quality

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


	United States		Canada		EMEA(1)		Total
Balance at December 31, 2020	$	77	$	15	$	41	$	133
Provision	2		1		3		6
Charge-offs	(2)		—		(1)		(3)
Recoveries and other(2)	1		—		(2)		(1)
Balance at March 31, 2021	$	78	$	16	$	41	$	135









Finance receivables as of March 31, 2021 collectively evaluated for impairment (3)	$	1,806	$	288	$	1,118	$	3,212

Balance at December 31, 2019	$	59	$	10	$	20	$	89
Provision	35		6		25		66
Charge-offs	(3)		(1)		(4)		(8)
Recoveries and other(2)	—		—		(1)		(1)
Balance at March 31, 2020	$	91	$	15	$	40	$	146









Finance receivables as of March 31, 2020 collectively evaluated for impairment(3)	$	1,866	$	289	$	1,132	$	3,287

_____________

(1)Includes developing market countries.

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

(3)Total Finance receivables exclude the allowance for credit losses of $135 and $146 at March 31, 2021 and 2020, respectively.

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

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


	March 31, 2021
	2021		2020		2019		2018		2017		Prior		Total Finance Receivables
United States (Direct):
Low Credit Risk	$	46	$	154	$	134	$	111	$	56	$	21	$	522
Average Credit Risk	17		53		89		43		20		6		228
High Credit Risk	18		87		39		24		12		5		185
Total	$	81	$	294	$	262	$	178	$	88	$	32	$	935

United States (Indirect):
Low Credit Risk	$	57	$	194	$	140	$	69	$	26	$	4	$	490
Average Credit Risk	42		110		99		56		24		5		336
High Credit Risk	9		16		8		8		3		1		45
Total	$	108	$	320	$	247	$	133	$	53	$	10	$	871

Canada
Low Credit Risk	$	11	$	36	$	31	$	21	$	7	$	3	$	109
Average Credit Risk	10		44		36		23		15		4		132
High Credit Risk	3		16		10		9		7		2		47
Total	$	24	$	96	$	77	$	53	$	29	$	9	$	288

EMEA(1)
Low Credit Risk	$	65	$	176	$	156	$	109	$	46	$	14	$	566
Average Credit Risk	52		153		138		89		38		12		482
High Credit Risk	7		19		21		12		8		3		70
Total	$	124	$	348	$	315	$	210	$	92	$	29	$	1,118







Total Finance Receivables
Low Credit Risk	$	179	$	560	$	461	$	310	$	135	$	42	$	1,687
Average Credit Risk	121		360		362		211		97		27		1,178
High Credit Risk	37		138		78		53		30		11		347
Total	$	337	$	1,058	$	901	$	574	$	262	$	80	$	3,212


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

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

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

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







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

_____________

(1)Includes developing market countries.

The aging of our billed finance receivables is as follows:


	March 31, 2021
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Direct	$	30	$	7	$	8	$	45	$	890	$	935	$	70
Indirect	18		4		3		25		846		871		—






Total United States	48		11		11		70		1,736		1,806		70
Canada	6		2		1		9		279		288		13





EMEA(1)	12		3		2		17		1,101		1,118		17

Total	$	66	$	16	$	14	$	96	$	3,116	$	3,212	$	100

	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

_____________

(1)Includes developing market countries

Secured Borrowings and Collateral

Refer to Note 11 - Debt, for additional information related to this arrangement including the related secured loan agreement.

Inventories and Equipment on Operating Leases, Net

3 Months Ended

Mar. 31, 2021

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:


	March 31, 2021		December 31, 2020
Finished goods	$	697	$	707
Work-in-process	48		43
Raw materials	96		93
Total Inventories	$	841	$	843

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

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


	March 31, 2021		December 31, 2020
Equipment on operating leases	$	1,332	$	1,376
Accumulated depreciation	(1,055)		(1,080)
Equipment on operating leases, net	$	277	$	296

Total contingent rentals on operating leases, consisting principally of usage charges in excess of minimum contracted amounts, were $15 and $22 for the three months ended March 31, 2021 and 2020, respectively.

Lessee

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

Lessee

Operating Leases

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

The components of lease expense are as follows:


	Three Months Ended March 31,
		2021		2020
Operating lease expense		$	27	$	28
Short-term lease expense		5		5
Variable lease expense(1)		12		12
Sublease income		(1)		—

Total Lease expense		$	43	$	45

_____________

(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 March 31, 2021, we have one additional real estate operating lease that has not yet commenced. This operating lease has an obligation and corresponding right-of-use (ROU) asset of $8 and commenced in April 2021 with a lease term of approximately 6 years and a one-time option to terminate the lease after 3 years.

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


	March 31, 2021		December 31, 2020
Other long-term assets	$	287	$	310

Accrued expenses and other current liabilities	$	79	$	83
Other long-term liabilities	231		250
Total Operating lease liabilities	$	310	$	333

Restructuring Programs

3 Months Ended

Mar. 31, 2021

Restructuring and Related Activities [Abstract]

Restructuring Programs

We engage in restructuring actions through 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.

During the three months ended March 31, 2021, we recorded net restructuring and asset impairment charges of $21, which included $14 of severance costs related to headcount reductions of approximately 350 employees worldwide, $1 of other contractual termination costs and $10 of asset impairment charges. These costs were partially offset by $4 of net reversals, primarily resulting from changes in estimated reserves from prior period initiatives.

Information related to restructuring program activity is outlined below:


	Severance and Related Costs		Other Contractual Termination Costs(2)		Asset Impairments(3)		Total
Balance at December 31, 2020	$	78	$	4	$	—	$	82
Provision	14		1		10		25
Reversals	(4)		—		—		(4)
Net current period charges(1)	10		1		10		21
Charges against reserve and currency	(29)		(1)		(10)		(40)
Balance at March 31, 2021	$	59	$	4	$	—	$	63

______________

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

(2)Primarily includes additional costs incurred upon the exit from our facilities including decommissioning costs and associated contractual termination costs.

(3)Primarily relates to the exit and abandonment of leased and owned facilities. The charge includes the accelerated write-off of $1 for leased ROU assets and $9 for owned assets upon exit from the facilities, net of any potential sublease income and other recoveries, including potential sales, in the first quarter of 2021.

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


	Three Months Ended March 31,
		2021		2020
Charges against reserve and currency		$	(40)	$	(35)

Effects of foreign currency and other non-cash items		13		—
Restructuring cash payments		$	(27)	$	(35)

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


	Three Months Ended March 31,
		2021		2020
Retention related severance/bonuses(1)		$	(4)	$	7
Contractual severance costs		—		4
Consulting and other costs(2)		—		1
Total		$	(4)	$	12

_____________

(1)Includes retention related severance and bonuses for employees expected to continue working beyond their minimum notification period before termination. The credit of $4 in the first quarter 2021 reflects a change in estimate.

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

Cash paid for restructuring related costs were approximately $3 and $0 for the three months ended March 31, 2021 and 2020, respectively, while the reserve was $13 and $21 at March 31, 2021 and December 31, 2020. The balance at March 31, 2021 is expected to be paid over the next twelve months.

Debt

3 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

Debt

Xerox Holdings Corporation / Xerox Corporation Intercompany Loan

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. In 2020, the net debt proceeds were contributed by Xerox Holdings Corporation to Xerox Corporation and recorded as Additional paid-in capital by Xerox Corporation.

In February 2021, Xerox Holdings Corporation and Xerox Corporation entered into an Intercompany Loan agreement for the net proceeds of $1,494 contributed by Xerox Holdings Corporation to Xerox Corporation in 2020. The intercompany loan, which did not involve the exchange of cash in the current period, resulted in the capitalization of the amount as Related Party Debt for Xerox Corporation as of March 31, 2021. The amount was originally recorded as Additional paid-in capital in 2020 when the cash was contributed by Xerox Holdings Corporation.

The intercompany loan was established to mirror the terms included in Xerox Holdings Corporation’s 2025 and 2028 Senior Notes, including interest rates and payment dates. The intercompany interest expense also includes a ratable amount to reimburse Xerox Holdings Corporation for its debt issuance costs and premium.

At March 31, 2021, the balance of the Intercompany Loan reported in Xerox Corporation’s Condensed Consolidated Balance Sheet was $1,494, which is net of related debt issuance costs, and the intercompany interest payable was $10. Xerox Corporation’s interest expense for the three months ended March 31, 2021 included $20 of interest expense associated with this Intercompany Loan.

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 (current rate of 1.69% at March 31, 2021).

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 (current rate of 1.73% at March 31, 2021).

Below are the assets and liabilities held by the consolidated SPEs, which are included in our Condensed Consolidated Balance Sheets. As a result of the above sales, the assets of the SPEs are not available to satisfy any of our other obligations. Conversely, the credit holders of these SPEs borrowings do not have legal recourse to the Company’s general credit or other assets.


	March 31, 2021		December 31, 2020
Assets held by SPEs
Billed portion of finance receivables, net	$	25	$	28
Finance receivables, net	326		350
Finance receivables due after one year, net	440		510
Equipment on operating leases, net	6		8
Restricted cash(1)	43		22
Total Assets	$	840	$	918
Liabilities held by SPEs
Current portion of long-term debt, net(2)	$	380	$	394
Long term debt, net(2)	290		370
Total Liabilities	$	670	$	764

_____________

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

(2)Net of debt issuance costs of $3.

Interest Expense and Income

Interest expense and income were as follows:


	Three Months Ended March 31,
		2021		2020
Interest expense(1)(2)		$	52	$	51
Interest income(3)		56		67

_____________

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

(2)Interest expense for the three month ended March 31, 2021 for Xerox Corporation includes $20 of intercompany interest expense for the Xerox Holdings Corporation / Xerox Corporation Intercompany Loan.

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

Financial Instruments

3 Months Ended

Mar. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Financial Instruments

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. At March 31, 2021 there were no material interest rate derivative contracts outstanding.

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 March 31, 2021 and December 31, 2020, we had outstanding forward exchange and purchased option contracts with gross notional values of $968 and $1,161 respectively, with terms of less than 12 months. Approximately 78% of the contracts at March 31, 2021 mature within three months, 11% mature in three to six months and 11% in six to twelve months. The decrease in hedge position from December 31, 2020 is primarily for GBP and YEN exposures due to lower requirements. There has not been any material change in our hedging strategy.

Foreign Currency Cash Flow Hedges

We designate a portion of our foreign currency derivative contracts as cash flow hedges of our foreign currency-denominated inventory purchases, sales and expenses. The net (liability) asset fair value of these contracts were $(7) and $2 as of March 31, 2021 and December 31, 2020, respectively.

Summary of Derivative Instruments Fair Value

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


Designation of Derivatives	Balance Sheet Location	March 31, 2021		December 31, 2020
Derivatives Designated as Hedging Instruments
Foreign exchange contracts - forwards	Other current assets	$	1	$	3
	Accrued expenses and other current liabilities	(8)		(2)
Foreign currency options	Other current assets	—		1



	Net designated derivative (liability) asset	$	(7)	$	2

Derivatives NOT Designated as Hedging Instruments
Foreign exchange contracts – forwards	Other current assets	$	3	$	3
	Accrued expenses and other current liabilities	(6)		(3)
	Net undesignated derivative liability	$	(3)	$	—

Summary of Derivatives	Total Derivative assets	$	4	$	7
	Total Derivative liabilities	(14)		(5)
	Net Derivative (liability) asset	$	(10)	$	2

Summary of Derivative Instruments Gains (Losses)

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

Designated Derivative Instruments Gains (Losses)

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


	Three Months Ended March 31,
Gain (Loss) on Derivative Instruments		2021		2020
Fair Value Hedges - Interest Rate Contracts
Derivative loss recognized in interest expense		$	—	$	(1)
Hedged item gain recognized in interest expense		—		1

Cash Flow Hedges - Foreign Exchange Forward Contracts and Options
Derivative (loss) gain recognized in OCI (effective portion)		$	(10)	$	7
Derivative loss reclassified from AOCL to income - Cost of sales (effective portion)		(1)		(1)

During the three months ended March 31, 2021 and 2020, no amount of ineffectiveness was recorded in the Condensed Consolidated Statements of Income (Loss) for these designated cash flow hedges and all components of each derivative’s gain or (loss) were included in the assessment of hedge effectiveness. In addition, no amount was recorded for an underlying exposure that did not occur or was not expected to occur.

As of March 31, 2021, a net after-tax loss of $5 was recorded in Accumulated other comprehensive loss associated with our cash flow hedging activity. The entire balance is expected to be reclassified into net income within the next 12 months, providing an offsetting economic impact against the underlying anticipated transactions.

Non-Designated Derivative Instruments Gains (Losses)

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

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


Derivatives NOT Designated as Hedging Instruments	Location of Derivative (Loss) Gain	Three Months Ended March 31,
			2021		2020
Foreign exchange contracts – forwards	Other expense – Currency (losses) gains, net		$	(18)	$	14

For the three months ended March 31, 2021 and 2020 currency losses, net were $2 and $2, 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

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value of Financial Assets and Liabilities

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


	March 31, 2021		December 31, 2020
Assets
Foreign exchange contracts - forwards	$	4	$	6
Foreign currency options	—		1


Deferred compensation plan investments in mutual funds	17		18
Total	$	21	$	25
Liabilities
Foreign exchange contracts - forwards	$	14	$	5



Deferred compensation plan liabilities	17		17
Total	$	31	$	22

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:


	March 31, 2021				December 31, 2020
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Cash and cash equivalents	$	2,379	$	2,379	$	2,625	$	2,625
Accounts receivable, net	781		781		883		883
Short-term debt and current portion of long-term debt	678		688		394		396
Long-term Debt
Xerox Holdings Corporation	1,494		1,558		1,493		1,596
Xerox Corporation	1,890		1,992		2,187		2,298
Xerox - Other Subsidiaries(1)	290		292		370		372
Long-term debt	$	3,674	$	3,842	$	4,050	$	4,266

_____________

(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

3 Months Ended

Mar. 31, 2021

Retirement Benefits [Abstract]

Employee Benefit Plans

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

























	Three Months Ended March 31,
	Pension Benefits
	U.S. Plans				Non-U.S. Plans				Retiree Health
Components of Net Periodic Benefit Costs:	2021		2020		2021		2020		2021		2020
Service cost	$	—	$	1	$	5	$	5	$	1	$	1
Interest cost	18		23		22		29		2		2
Expected return on plan assets	(28)		(26)		(52)		(47)		—		—
Recognized net actuarial loss	5		7		15		14		—		—
Amortization of prior service credit	—		—		—		—		(17)		(19)
Recognized settlement loss	15		19		—		—		—		—
Recognized curtailment gain	—		—		—		(1)		—		—
Defined benefit plans	10		24		(10)		—		(14)		(16)
Defined contribution plans	—		5		5		5		n/a		n/a
Net Periodic Benefit Cost (Credit)	10		29		(5)		5		(14)		(16)

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss):
Net actuarial (gain) loss(1)	(44)		12		1		—		—		—
Amortization of net actuarial loss	(20)		(26)		(15)		(14)		—		—
Amortization of prior service credit	—		—		—		—		17		19

Total Recognized in Other Comprehensive Income (Loss)(2)	(64)		(14)		(14)		(14)		17		19
Total Recognized in Net Periodic Benefit (Credit) Cost and Other Comprehensive Income (Loss)	$	(54)	$	15	$	(19)	$	(9)	$	3	$	3

_____________

(1)The net actuarial (gain) loss for U.S. Plans primarily reflects the remeasurement of our primary U.S. pension plans as a result of the payment of periodic settlements.

(2)Amounts represent the pre-tax effect included within Other Comprehensive Income (Loss). Refer to Note 17 - Other Comprehensive Income (Loss) for related tax effects and the after-tax amounts.

Contributions

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


	Three Months Ended March 31,				Year Ended December 31,
	2021		2020		Estimated 2021		2020
U.S. plans	$	6	$	6	$	25	$	35
Non-U.S. plans	29		27		105		104
Total Pension	$	35	$	33	$	130	$	139

Retiree Health	$	6	$	5	$	30	$	25

There are no mandatory contributions required in 2021 for our U.S. tax-qualified defined benefit plans to meet the minimum funding requirements.

Defined Contribution Plans

In the first quarter 2021, the Company temporarily suspended and will not make its full year 2021 employer match/contribution for its U.S. based 401(k) saving plans for salaried employees. The suspension is expected to result in savings of approximately $20 for the year ending December 31, 2021.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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-Name Accounting Standards Codification
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-Section 55
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+ Details

Shareholders' Equity of Xerox Holdings

3 Months Ended

Mar. 31, 2021

Stockholders' Equity Note [Abstract]

Shareholders' Equity of Xerox Holdings

Shareholders’ Equity of Xerox Holdings

(shares in thousands)

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


	Common Stock(1)		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL(2)		Xerox Holdings Shareholders’ Equity		Non-controlling Interests		Total Equity
Balance at December 31, 2020	$	198	$	2,445	$	—	$	6,281	$	(3,332)	$	5,592	$	4	$	5,596

Comprehensive income (loss), net	—		—		—		39		(3)		36		—		36
Cash dividends declared - common(3)	—		—		—		(49)		—		(49)		—		(49)
Cash dividends declared - preferred(4)	—		—		—		(4)		—		(4)		—		(4)


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

Payments to acquire treasury stock, including fees	—		—		(162)		—		—		(162)		—		(162)



Balance at March 31, 2021	$	199	$	2,456	$	(162)	$	6,267	$	(3,335)	$	5,425	$	4	$	5,429


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

Comprehensive loss, net	—		—		—		(2)		(138)		(140)		—		(140)
Cash dividends declared - common(3)	—		—		—		(54)		—		(54)		—		(54)
Cash dividends declared - preferred(4)	—		—		—		(4)		—		(4)		—		(4)


Stock option and incentive plans, net	—		4		—		—		—		4		—		4


Cancellation of treasury stock	(2)		(74)		76		—		—		—		—		—


Balance at March 31, 2020	$	213	$	2,712	$	—	$	6,252	$	(3,784)	$	5,393	$	7	$	5,400

_____________

(1)Common Stock has a par value of $1 per share.

(2)Refer to Note 17 - Other Comprehensive Income (Loss) for the components of AOCL.

(3)Cash dividends declared on common stock for the three months ended March 31, 2021 and 2020 were $0.25 per share, respectively.

(4)Cash dividends declared on preferred stock for the three months ended March 31, 2021 and 2020 were $20.00 per share, respectively.

Treasury Stock

The following is a summary of the purchases of common stock during 2021:


	Shares	Amount
Balance at December 31, 2020	—	$	—
Purchases(1)	6,704	162
Cancellations	—	—
Balance at March 31, 2021	6,704	$	162

_____________

(1)Includes associated fees.

Shareholders' Equity of Xerox

3 Months Ended

Mar. 31, 2021

Shareholders' Equity of Xerox

Shareholders’ Equity of Xerox Holdings

(shares in thousands)

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


	Common Stock(1)		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL(2)		Xerox Holdings Shareholders’ Equity		Non-controlling Interests		Total Equity
Balance at December 31, 2020	$	198	$	2,445	$	—	$	6,281	$	(3,332)	$	5,592	$	4	$	5,596

Comprehensive income (loss), net	—		—		—		39		(3)		36		—		36
Cash dividends declared - common(3)	—		—		—		(49)		—		(49)		—		(49)
Cash dividends declared - preferred(4)	—		—		—		(4)		—		(4)		—		(4)


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

Payments to acquire treasury stock, including fees	—		—		(162)		—		—		(162)		—		(162)



Balance at March 31, 2021	$	199	$	2,456	$	(162)	$	6,267	$	(3,335)	$	5,425	$	4	$	5,429


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

Comprehensive loss, net	—		—		—		(2)		(138)		(140)		—		(140)
Cash dividends declared - common(3)	—		—		—		(54)		—		(54)		—		(54)
Cash dividends declared - preferred(4)	—		—		—		(4)		—		(4)		—		(4)


Stock option and incentive plans, net	—		4		—		—		—		4		—		4


Cancellation of treasury stock	(2)		(74)		76		—		—		—		—		—


Balance at March 31, 2020	$	213	$	2,712	$	—	$	6,252	$	(3,784)	$	5,393	$	7	$	5,400

_____________

(1)Common Stock has a par value of $1 per share.

(2)Refer to Note 17 - Other Comprehensive Income (Loss) for the components of AOCL.

(3)Cash dividends declared on common stock for the three months ended March 31, 2021 and 2020 were $0.25 per share, respectively.

(4)Cash dividends declared on preferred stock for the three months ended March 31, 2021 and 2020 were $20.00 per share, respectively.

Treasury Stock

The following is a summary of the purchases of common stock during 2021:


	Shares	Amount
Balance at December 31, 2020	—	$	—
Purchases(1)	6,704	162
Cancellations	—	—
Balance at March 31, 2021	6,704	$	162

_____________

(1)Includes associated fees.

XEROX CORPORATION

Shareholders' Equity of Xerox

Shareholder's Equity of Xerox

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


	Additional Paid-in Capital		Retained Earnings		AOCL(1)		Xerox Shareholder's Equity		Non-controlling Interests		Total Equity
Balance at December 31, 2020	$	4,879	$	5,834	$	(3,332)	$	7,381	$	4	$	7,385

Comprehensive income (loss), net	—		41		(3)		38		—		38


Dividends declared to parent	—		(201)		—		(201)		—		(201)
Intercompany loan capitalization(2)	(1,494)		—		—		(1,494)		—		(1,494)
Transfers to parent	(34)		—		—		(34)		—		(34)









Balance at March 31, 2021	$	3,351	$	5,674	$	(3,335)	$	5,690	$	4	$	5,694


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

Comprehensive loss, net	—		(2)		(138)		(140)		—		(140)


Dividends declared to parent	—		(290)		—		(290)		—		(290)
Transfers from parent	238		—		—		238		—		238








Balance at March 31, 2020	$	3,504	$	5,955	$	(3,784)	$	5,675	$	7	$	5,682

_____________

(1)Refer to Note 17 - Other Comprehensive Income (Loss) for the components of AOCL.

(2)Refer to Note 11- Debt for information regarding capitalization of balance to Intercompany Loan with Xerox Holdings Corporation.

Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2021

Equity [Abstract]

Other Comprehensive Income (Loss)

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


	Three Months Ended March 31,
		2021	2020
			Pre-tax		Net of Tax		Pre-tax		Net of Tax
Translation Adjustments Losses			$	(52)	$	(51)	$	(204)	$	(197)
Unrealized (Losses) Gains
Changes in fair value of cash flow hedges (losses) gains			(10)		(8)		7		4
Changes in cash flow hedges reclassed to earnings(1)			1		1		1		1

Net Unrealized (Losses) Gains			(9)		(7)		8		5

Defined Benefit Plans Gains (Losses)
Net actuarial/prior service gains (losses)			43		32		(12)		(9)
Prior service amortization(2)			(17)		(12)		(19)		(14)
Actuarial loss amortization/settlement(2)			35		26		40		30

Other gains(3)			9		9		47		47
Changes in Defined Benefit Plans Gains			70		55		56		54



Other Comprehensive Income (Loss) Attributable to Xerox Holdings/Xerox			$	9	$	(3)	$	(140)	$	(138)

____________

(1)Reclassified to Cost of sales - refer to Note 12 - Financial Instruments for additional information regarding our cash flow hedges.

(2)Reclassified to Total Net Periodic Benefit Cost - refer to Note 14 - Employee Benefit Plans for additional information.

(3)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:


	March 31, 2021		December 31, 2020
Cumulative translation adjustments	$	(1,771)	$	(1,720)
Other unrealized (losses) gains, net	(5)		2
Benefit plans net actuarial losses and prior service credits	(1,559)		(1,614)
Total Accumulated Other Comprehensive Loss Attributable to Xerox Holdings/Xerox	$	(3,335)	$	(3,332)

Earnings (Loss) per Share

3 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Earnings (Loss) per Share

(shares in thousands)

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


	Three Months Ended March 31,
		2021		2020
Basic Earnings (Loss) per Share
Net Income (Loss) Attributable to Xerox Holdings		$	39	$	(2)
Accrued dividends on preferred stock		(4)		(4)


Adjusted Net income (loss) available to common shareholders		$	35	$	(6)

Weighted average common shares outstanding		195,985		212,750




Basic Earnings (Loss) per Share		$	0.18	$	(0.03)

Diluted Earnings (Loss) per Share
Net Income (Loss) Attributable to Xerox Holdings		$	39	$	(2)
Accrued dividends on preferred stock		(4)		(4)


Adjusted Net income (loss) available to common shareholders		$	35	$	(6)

Weighted average common shares outstanding		195,985		212,750
Common shares issuable with respect to:
Stock options		—		—
Restricted stock and performance shares		2,181		—
Convertible preferred stock		—		—

Adjusted weighted average common shares outstanding		198,166		212,750




Diluted Earnings (Loss) per Share		$	0.18	$	(0.03)

The following securities were not included in the computation of diluted earnings per share as they were either contingently issuable shares or shares that if included would have been anti-dilutive:
Stock options		693		849
Restricted stock and performance shares		5,327		6,478
Convertible preferred stock		6,742		6,742
Total Anti-Dilutive Securities		12,762		14,069

Dividends per Common Share		$	0.25	$	0.25

Contingencies and Litigation

3 Months Ended

Mar. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Contingencies and Litigation

Legal Matters

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

Brazil Contingencies

Our Brazilian operations have received or been the subject of numerous governmental assessments related to indirect and other taxes. The tax matters principally relate to claims for taxes on the internal transfer of inventory, municipal service taxes on rentals and gross revenue taxes. We are disputing these tax matters and intend to vigorously defend our positions. Based on the opinion of legal counsel and current reserves for those matters deemed probable of loss, we do not believe that the ultimate resolution of these matters will materially impact our results of operations, financial position or cash flows. Below is a summary of our Brazilian tax contingencies:


	March 31, 2021		December 31, 2020
Tax contingency - unreserved	$	335	$	355
Escrow cash deposits	35		39
Surety bonds	96		112
Letters of credit	72		78
Liens on Brazilian assets	—		—

The decrease in the unreserved portion of the tax contingency, inclusive of any related interest, was primarily related to currency, partially offset by interest. 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 March 31, 2021 and December 31, 2020. We routinely assess all these matters as to the probability of ultimately incurring a liability against our Brazilian operations and record our best estimate of the ultimate loss in situations where we assess the likelihood of an ultimate loss as probable.

Litigation Against the Company

Pending Litigation Relating to the Fuji Transaction:

1.Ribbe v. Jacobson, et al.:

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

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

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

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

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

Discovery 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.

On April 7, 2021, plaintiff filed in the previously dismissed Ribbe I and XCCSL actions a motion seeking an award of attorneys’ fees of $1.5 and a service award of $10 thousand for benefits he allegedly obtained for Xerox and its stockholders.

Xerox will vigorously defend against this matter. At this time, it is premature to make any conclusion regarding the probability of incurring material losses in this litigation. Should developments cause a change in our determination as to an unfavorable outcome, or result in a final adverse judgment or settlement, there could be a material adverse effect on our results of operations, cash flows and financial position in the period in which such change in determination, judgment, or settlement occurs.

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

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

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

Other Litigation

1.Xerox Holdings Corporation v. Factory Mutual Insurance Company and Related Actions:

On March 10, 2021, Xerox Holdings Corporation (“XHC”) filed a complaint for breach of contract and declaratory judgment against Factory Mutual Insurance Company in Rhode Island Superior Court, Providence County seeking insurance coverage for business interruption losses resulting from the coronavirus/COVID-19 pandemic. The complaint alleges that defendant agreed to provide XHC with up to $1 billion in per-occurrence coverage for losses resulting from pandemic-related loss or damage to certain real and other property, including business interruption loss resulting from insured property damage; that the pandemic had inflicted significant physical loss or damage to property of XHC and its direct and indirect customers; that XHC’s worldwide actual and projected losses through the end of 2020 totaled in excess of $300 (and is still increasing); and that following XHC’s timely and proper claim in March 2020 for coverage under the “all risk” commercial property insurance policy it had purchased from defendant, defendant improperly denied and rejected coverage for most of the claim. The complaint seeks a jury trial, a declaratory judgment against defendant declaring that Xerox is entitled to full coverage of costs and losses under defendant’s policy and declaring that defendant is required to pay for such costs and losses, subject to any applicable limits; damages in an amount to be determined at trial; consequential damages; attorneys’ fees and costs; pre- and post-judgment interest; and other relief the Court deems just and proper. Also on March 10, 2021, subsidiaries of XHC filed similar complaints and related requests for arbitration in Toronto, London, and Amsterdam (see below).

XHC consented to defendant’s request for an extension until May 6, 2021 of its time in which to answer or otherwise respond to the complaint. The parties consented to assignment to the Court’s business calendar. At an initial conference on April 8, 2021, both parties informed the Court that they anticipate filing motions for judgment on the pleadings.

a.Canadian action

On March 10, 2021, plaintiffs Xerox Canada Inc. and Xerox Canada Ltd. filed a Notice of Action against Factory Mutual Insurance Company in the Ontario Superior Court of Justice in Toronto. On April 9, 2021, plaintiffs filed their Statement of Claim. Plaintiffs must serve both filings by September 10, 2021.

b.UK action

On March 10, 2021, plaintiffs Concept Group Limited, Continua Limited, Xerox Limited, and Xerox UK Limited filed a Claim Form against F.M. Insurance Company Limited in the High Court of Justice, Commercial Court, in London. Also on March 10, 2021, plaintiffs submitted two Requests for Arbitration, which were withdrawn after the parties agreed on March 31, 2021 that both liability and quantum of plaintiffs’ claims would be litigated in the Commercial Court proceeding.

c.Netherlands action

On March 10, 2021, plaintiffs Xerox Corporation and 20 of its European subsidiaries filed a Writ of Summons against FM Insurance Europe S.A. in the Amsterdam District Court. Also on March 10, 2021, plaintiffs submitted a Request for Arbitration, which was withdrawn after the parties agreed on April 12, 2021, that both liability and quantum of plaintiffs’ claims would be litigated in the District Court proceeding.

Guarantees

We have issued or provided approximately $277 of guarantees as of March 31, 2021 in the form of letters of credit or surety bonds issued to i) support certain insurance programs; ii) support our obligations related to the Brazil contingencies; and iii) support certain contracts, primarily with public sector customers, which require us to provide a surety bond as a guarantee of our performance of contractual obligations.

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

Subsequent Event	3 Months Ended
Subsequent Event	Mar. 31, 2021
Subsequent Events [Abstract]
Subsequent Event	Subsequent Events Fuji Xerox Technology Agreement (TA) As previously disclosed, our TA with Fuji Xerox (now known as FUJIFILM Business Innovation Corp.((Fuji Xerox)) expired on March 31, 2021. The TA included a provision that allowed 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. Fuji Xerox elected to continue its use of the Xerox brand trademark over the next two years and, therefore, made the upfront payment due under the amended agreement of $100 in April 2021. We expect to recognize the revenue associated with this extended brand license ratably over the two year transition period. Accordingly, we expect any potential entry by Xerox for Xerographic products 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 or new purchase/supply agreements. Acquisition In April 2021, Xerox acquired an office equipment dealer in Canada for approximately $30. This acquisition is part of Xerox's strategy of focusing on further penetrating the small-to-medium sized business (SMB) market through acquisitions of local area resellers and partners (including multi-brand dealers). We are currently assessing the purchase price allocation but expect the majority to be allocated to intangible assets and goodwill.

Recent Accounting Pronouncements (Policies)	3 Months Ended
Recent Accounting Pronouncements (Policies)	Mar. 31, 2021
Accounting Standards Update and Change in Accounting Principle [Abstract]
Accounting Standards Updates	Accounting Standard Updates to be Adopted: Debt In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40). This update simplifies the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments and convertible preferred stock. This update also amends the guidance for the derivatives scope exception for contracts in an entity's own equity to reduce form-over-substance-based accounting conclusions and requires the application of the if-converted method for calculating diluted earnings per share. This update is effective for our fiscal year beginning January 1, 2022. We are currently evaluating the impact of the adoption of this standard on the Company’s consolidated financial statements and related disclosures. Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting, 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. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, which provided clarification guidance to ASU 2020-04. These ASUs were effective commencing with our quarter ended March 31, 2020 through December 31, 2022. There has been no impact to date as a result of ASU 2020-04 or ASU 2021-01 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. Accounting Standard Updates Adopted in 2021: 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. We adopted this update effective for our fiscal year beginning January 1, 2021. The adoption did not have nor is expected to have a material impact on our results of operations, financial position or disclosures. Other Updates In 2021 and 2020, the FASB also issued the following ASUs, which impact the Company but did not have or are not expected to have a material impact on our financial condition, results of operations or cash flows upon adoption. Those updates are as follows: •Investments: ASU 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323) and Derivatives and Hedging (Topic 815). This update is effective for our fiscal year beginning January 1, 2021.
Operating Leases	Operating LeasesWe have operating leases for real estate and vehicles in our domestic and international operations and for certain equipment in our domestic operations. Additionally, we have identified embedded operating leases within certain supply chain contracts for warehouses, primarily within our domestic operations. Our leases have remaining terms of up to twelve years and a variety of renewal and/or termination options.

Revenue (Tables)

3 Months Ended

Mar. 31, 2021

Revenue from Contract with Customer [Abstract]

Disaggregation of revenue

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


	Three Months Ended March 31,
		2021		2020
Primary geographical markets(1):
United States		$	974	$	1,114
Europe		499		481
Canada		93		108
Other		144		157
Total Revenues		$	1,710	$	1,860

Major product and services lines:
Equipment		$	381	$	325
Supplies, paper and other sales		221		240
Maintenance agreements(2)		435		529
Service arrangements(3)		489		566
Rental and other		129		141
Financing		55		59

Total Revenues		$	1,710	$	1,860

Sales channels:

Direct equipment lease(4)		$	147	$	126
Distributors & resellers(5)		254		223
Customer direct		201		216
Total Sales		$	602	$	565

_____________

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

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

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

(4)Primarily reflects sales through bundled lease arrangements.

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

Capitalized contract cost

Incremental direct costs are as follows:


	Three Months Ended March 31,
		2021		2020
Incremental direct costs of obtaining a contract		$	13	$	15
Amortization of incremental direct costs		19		21

Lessor (Tables)

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

Components of lease income

The components of lease income are as follows:


		Three Months Ended March 31,
	Location in Statements of Income (Loss)		2021		2020
Revenue from sales type leases	Sales		$	147	$	126


Interest income on lease receivables	Financing		55		59


Lease income - operating leases	Services, maintenance and rentals		67		86
Variable lease income	Services, maintenance and rentals		15		22
Total Lease income			$	284	$	293

Components of lease income

The components of lease income are as follows:


		Three Months Ended March 31,
	Location in Statements of Income (Loss)		2021		2020
Revenue from sales type leases	Sales		$	147	$	126


Interest income on lease receivables	Financing		55		59


Lease income - operating leases	Services, maintenance and rentals		67		86
Variable lease income	Services, maintenance and rentals		15		22
Total Lease income			$	284	$	293

Components of lease income

The components of lease income are as follows:


		Three Months Ended March 31,
	Location in Statements of Income (Loss)		2021		2020
Revenue from sales type leases	Sales		$	147	$	126


Interest income on lease receivables	Financing		55		59


Lease income - operating leases	Services, maintenance and rentals		67		86
Variable lease income	Services, maintenance and rentals		15		22
Total Lease income			$	284	$	293

Supplementary Financial Information (Tables)

3 Months Ended

Mar. 31, 2021

Supplemental Financial Information [Abstract]

Schedule of restricted cash

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


	March 31, 2021		December 31, 2020
Cash and cash equivalents	$	2,379	$	2,625
Restricted cash
Litigation deposits in Brazil	38		42
Escrow and cash collections related to secured borrowing arrangements(1)	43		22
Other restricted cash	1		2
Total Restricted cash	82		66
Cash, cash equivalents and restricted cash	$	2,461	$	2,691

_____________

(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 Condensed Consolidated Balance Sheets as follows:


	March 31, 2021		December 31, 2020
Other current assets	$	44	$	23
Other long-term assets	38		43
Total Restricted cash	$	82	$	66

Summarized cash flow information

Summarized cash flow information is as follows:


	Three Months Ended March 31,
		2021		2020
Provision for receivables		$	11	$	74
Provision for inventory		9		6
Provision for product warranty		2		2
Depreciation of buildings and equipment		19		21
Depreciation and obsolescence of equipment on operating leases		42		51
Amortization of internal use software		10		11

Amortization of acquired intangible assets(1)		15		11
Amortization of customer contract costs(2)		20		22
Cost of additions to land, buildings and equipment		8		18
Cost of additions to internal use software		9		5
Common stock dividends - Xerox Holdings Corporation		50		54
Preferred stock dividends - Xerox Holdings Corporation		4		4



Repurchases related to stock-based compensation - Xerox Holdings Corporation		4		7

_____________

(1)Amortization of acquired intangible assets of Xerox is $14 for the three months ended March 31, 2021.

Accounts Receivable, Net (Tables)

3 Months Ended

Mar. 31, 2021

Receivables [Abstract]

Schedule of accounts receivable, net

Accounts receivable, net were as follows:


	March 31, 2021		December 31, 2020
Invoiced	$	637	$	735
Accrued(1)	212		217
Allowance for doubtful accounts	(68)		(69)
Accounts receivable, net	$	781	$	883

_____________

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

Schedule of allowance for doubtful accounts

The allowance for doubtful accounts was as follows:


	2021		2020
Balance at December 31st	$	69	$	55
Provision	4		8
Charge-offs	(5)		(2)
Recoveries and other(1)	—		(1)
Balance at March 31st	$	68	$	60

_____________

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

Schedule of accounts receivables sales

Accounts receivable sales activity was as follows:


	Three Months Ended March 31,
		2021		2020
Accounts receivable sales(1)		$	107	$	53

____________

Finance Receivables, Net (Tables)

3 Months Ended

Mar. 31, 2021

Receivables [Abstract]

Finance receivables

Finance receivables, net were as follows:


	March 31, 2021		December 31, 2020
Gross receivables	$	3,596	$	3,691
Unearned income	(384)		(393)
Subtotal	3,212		3,298
Residual values	—		—
Allowance for doubtful accounts	(135)		(133)
Finance receivables, net	3,077		3,165
Less: Billed portion of finance receivables, net	92		99
Less: Current portion of finance receivables not billed, net	1,065		1,082
Finance receivables due after one year, net	$	1,920	$	1,984

Allowance for credit losses, financing receivables

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


	United States		Canada		EMEA(1)		Total
Balance at December 31, 2020	$	77	$	15	$	41	$	133
Provision	2		1		3		6
Charge-offs	(2)		—		(1)		(3)
Recoveries and other(2)	1		—		(2)		(1)
Balance at March 31, 2021	$	78	$	16	$	41	$	135









Finance receivables as of March 31, 2021 collectively evaluated for impairment (3)	$	1,806	$	288	$	1,118	$	3,212

Balance at December 31, 2019	$	59	$	10	$	20	$	89
Provision	35		6		25		66
Charge-offs	(3)		(1)		(4)		(8)
Recoveries and other(2)	—		—		(1)		(1)
Balance at March 31, 2020	$	91	$	15	$	40	$	146









Finance receivables as of March 31, 2020 collectively evaluated for impairment(3)	$	1,866	$	289	$	1,132	$	3,287

_____________

(1)Includes developing market countries.

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

(3)Total Finance receivables exclude the allowance for credit losses of $135 and $146 at March 31, 2021 and 2020, 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:


	March 31, 2021
	2021		2020		2019		2018		2017		Prior		Total Finance Receivables
United States (Direct):
Low Credit Risk	$	46	$	154	$	134	$	111	$	56	$	21	$	522
Average Credit Risk	17		53		89		43		20		6		228
High Credit Risk	18		87		39		24		12		5		185
Total	$	81	$	294	$	262	$	178	$	88	$	32	$	935

United States (Indirect):
Low Credit Risk	$	57	$	194	$	140	$	69	$	26	$	4	$	490
Average Credit Risk	42		110		99		56		24		5		336
High Credit Risk	9		16		8		8		3		1		45
Total	$	108	$	320	$	247	$	133	$	53	$	10	$	871

Canada
Low Credit Risk	$	11	$	36	$	31	$	21	$	7	$	3	$	109
Average Credit Risk	10		44		36		23		15		4		132
High Credit Risk	3		16		10		9		7		2		47
Total	$	24	$	96	$	77	$	53	$	29	$	9	$	288

EMEA(1)
Low Credit Risk	$	65	$	176	$	156	$	109	$	46	$	14	$	566
Average Credit Risk	52		153		138		89		38		12		482
High Credit Risk	7		19		21		12		8		3		70
Total	$	124	$	348	$	315	$	210	$	92	$	29	$	1,118







Total Finance Receivables
Low Credit Risk	$	179	$	560	$	461	$	310	$	135	$	42	$	1,687
Average Credit Risk	121		360		362		211		97		27		1,178
High Credit Risk	37		138		78		53		30		11		347
Total	$	337	$	1,058	$	901	$	574	$	262	$	80	$	3,212


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

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

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

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







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

_____________

(1)Includes developing market countries.

Aging of billed finance receivables

The aging of our billed finance receivables is as follows:


	March 31, 2021
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Direct	$	30	$	7	$	8	$	45	$	890	$	935	$	70
Indirect	18		4		3		25		846		871		—






Total United States	48		11		11		70		1,736		1,806		70
Canada	6		2		1		9		279		288		13





EMEA(1)	12		3		2		17		1,101		1,118		17

Total	$	66	$	16	$	14	$	96	$	3,116	$	3,212	$	100

	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

_____________

(1)Includes developing market countries

Inventories and Equipment on Operating Leases, Net (Tables)

3 Months Ended

Mar. 31, 2021

Inventories and Equipment on Operating Leases, Net [Abstract]

Schedule of inventories by major category

The following is a summary of Inventories by major category:


	March 31, 2021		December 31, 2020
Finished goods	$	697	$	707
Work-in-process	48		43
Raw materials	96		93
Total Inventories	$	841	$	843

Schedule of equipment on operating leases and related accumulated depreciation

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


	March 31, 2021		December 31, 2020
Equipment on operating leases	$	1,332	$	1,376
Accumulated depreciation	(1,055)		(1,080)
Equipment on operating leases, net	$	277	$	296

Lessee (Tables)

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

Schedule of components of lease expense

The components of lease expense are as follows:


	Three Months Ended March 31,
		2021		2020
Operating lease expense		$	27	$	28
Short-term lease expense		5		5
Variable lease expense(1)		12		12
Sublease income		(1)		—

Total Lease expense		$	43	$	45

_____________

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


	March 31, 2021		December 31, 2020
Other long-term assets	$	287	$	310

Accrued expenses and other current liabilities	$	79	$	83
Other long-term liabilities	231		250
Total Operating lease liabilities	$	310	$	333

Restructuring Programs (Tables)

3 Months Ended

Mar. 31, 2021

Restructuring and Related Activities [Abstract]

Restructuring Program Activity

Information related to restructuring program activity is outlined below:


	Severance and Related Costs		Other Contractual Termination Costs(2)		Asset Impairments(3)		Total
Balance at December 31, 2020	$	78	$	4	$	—	$	82
Provision	14		1		10		25
Reversals	(4)		—		—		(4)
Net current period charges(1)	10		1		10		21
Charges against reserve and currency	(29)		(1)		(10)		(40)
Balance at March 31, 2021	$	59	$	4	$	—	$	63

______________

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

(2)Primarily includes additional costs incurred upon the exit from our facilities including decommissioning costs and associated contractual termination costs.

Reconciliation to the consolidated statements of cash flows

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


	Three Months Ended March 31,
		2021		2020
Charges against reserve and currency		$	(40)	$	(35)

Effects of foreign currency and other non-cash items		13		—
Restructuring cash payments		$	(27)	$	(35)

Restructuring and related costs

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


	Three Months Ended March 31,
		2021		2020
Retention related severance/bonuses(1)		$	(4)	$	7
Contractual severance costs		—		4
Consulting and other costs(2)		—		1
Total		$	(4)	$	12

_____________

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

Debt (Tables)

3 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

Schedule of assets and liabilities held by SPE


	March 31, 2021		December 31, 2020
Assets held by SPEs
Billed portion of finance receivables, net	$	25	$	28
Finance receivables, net	326		350
Finance receivables due after one year, net	440		510
Equipment on operating leases, net	6		8
Restricted cash(1)	43		22
Total Assets	$	840	$	918
Liabilities held by SPEs
Current portion of long-term debt, net(2)	$	380	$	394
Long term debt, net(2)	290		370
Total Liabilities	$	670	$	764

_____________

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

(2)Net of debt issuance costs of $3.

Interest income and interest expense disclosure

Interest expense and income were as follows:


	Three Months Ended March 31,
		2021		2020
Interest expense(1)(2)		$	52	$	51
Interest income(3)		56		67

_____________

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

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

Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of derivative instruments fair value

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


Designation of Derivatives	Balance Sheet Location	March 31, 2021		December 31, 2020
Derivatives Designated as Hedging Instruments
Foreign exchange contracts - forwards	Other current assets	$	1	$	3
	Accrued expenses and other current liabilities	(8)		(2)
Foreign currency options	Other current assets	—		1



	Net designated derivative (liability) asset	$	(7)	$	2

Derivatives NOT Designated as Hedging Instruments
Foreign exchange contracts – forwards	Other current assets	$	3	$	3
	Accrued expenses and other current liabilities	(6)		(3)
	Net undesignated derivative liability	$	(3)	$	—

Summary of Derivatives	Total Derivative assets	$	4	$	7
	Total Derivative liabilities	(14)		(5)
	Net Derivative (liability) asset	$	(10)	$	2

Summary of gains (losses) on derivative instruments

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


	Three Months Ended March 31,
Gain (Loss) on Derivative Instruments		2021		2020
Fair Value Hedges - Interest Rate Contracts
Derivative loss recognized in interest expense		$	—	$	(1)
Hedged item gain recognized in interest expense		—		1

Cash Flow Hedges - Foreign Exchange Forward Contracts and Options
Derivative (loss) gain recognized in OCI (effective portion)		$	(10)	$	7
Derivative loss reclassified from AOCL to income - Cost of sales (effective portion)		(1)		(1)

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

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


Derivatives NOT Designated as Hedging Instruments	Location of Derivative (Loss) Gain	Three Months Ended March 31,
			2021		2020
Foreign exchange contracts – forwards	Other expense – Currency (losses) gains, net		$	(18)	$	14

Fair Value of Financial Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Fair value of financial assets and liabilities


	March 31, 2021		December 31, 2020
Assets
Foreign exchange contracts - forwards	$	4	$	6
Foreign currency options	—		1


Deferred compensation plan investments in mutual funds	17		18
Total	$	21	$	25
Liabilities
Foreign exchange contracts - forwards	$	14	$	5



Deferred compensation plan liabilities	17		17
Total	$	31	$	22

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:


	March 31, 2021				December 31, 2020
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Cash and cash equivalents	$	2,379	$	2,379	$	2,625	$	2,625
Accounts receivable, net	781		781		883		883
Short-term debt and current portion of long-term debt	678		688		394		396
Long-term Debt
Xerox Holdings Corporation	1,494		1,558		1,493		1,596
Xerox Corporation	1,890		1,992		2,187		2,298
Xerox - Other Subsidiaries(1)	290		292		370		372
Long-term debt	$	3,674	$	3,842	$	4,050	$	4,266

_____________

(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)

3 Months Ended

Mar. 31, 2021

Retirement Benefits [Abstract]

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:

























	Three Months Ended March 31,
	Pension Benefits
	U.S. Plans				Non-U.S. Plans				Retiree Health
Components of Net Periodic Benefit Costs:	2021		2020		2021		2020		2021		2020
Service cost	$	—	$	1	$	5	$	5	$	1	$	1
Interest cost	18		23		22		29		2		2
Expected return on plan assets	(28)		(26)		(52)		(47)		—		—
Recognized net actuarial loss	5		7		15		14		—		—
Amortization of prior service credit	—		—		—		—		(17)		(19)
Recognized settlement loss	15		19		—		—		—		—
Recognized curtailment gain	—		—		—		(1)		—		—
Defined benefit plans	10		24		(10)		—		(14)		(16)
Defined contribution plans	—		5		5		5		n/a		n/a
Net Periodic Benefit Cost (Credit)	10		29		(5)		5		(14)		(16)

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss):
Net actuarial (gain) loss(1)	(44)		12		1		—		—		—
Amortization of net actuarial loss	(20)		(26)		(15)		(14)		—		—
Amortization of prior service credit	—		—		—		—		17		19

Total Recognized in Other Comprehensive Income (Loss)(2)	(64)		(14)		(14)		(14)		17		19
Total Recognized in Net Periodic Benefit (Credit) Cost and Other Comprehensive Income (Loss)	$	(54)	$	15	$	(19)	$	(9)	$	3	$	3

_____________

(1)The net actuarial (gain) loss for U.S. Plans primarily reflects the remeasurement of our primary U.S. pension plans as a result of the payment of periodic settlements.

(2)Amounts represent the pre-tax effect included within Other Comprehensive Income (Loss). Refer to Note 17 - Other Comprehensive Income (Loss) for related tax effects and the after-tax amounts.

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

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


	Three Months Ended March 31,				Year Ended December 31,
	2021		2020		Estimated 2021		2020
U.S. plans	$	6	$	6	$	25	$	35
Non-U.S. plans	29		27		105		104
Total Pension	$	35	$	33	$	130	$	139

Retiree Health	$	6	$	5	$	30	$	25

Shareholders' Equity of Xerox Holdings (Tables)

3 Months Ended

Mar. 31, 2021

Stockholders' Equity Note [Abstract]

Schedule of stockholders equity

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


	Common Stock(1)		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL(2)		Xerox Holdings Shareholders’ Equity		Non-controlling Interests		Total Equity
Balance at December 31, 2020	$	198	$	2,445	$	—	$	6,281	$	(3,332)	$	5,592	$	4	$	5,596

Comprehensive income (loss), net	—		—		—		39		(3)		36		—		36
Cash dividends declared - common(3)	—		—		—		(49)		—		(49)		—		(49)
Cash dividends declared - preferred(4)	—		—		—		(4)		—		(4)		—		(4)


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

Payments to acquire treasury stock, including fees	—		—		(162)		—		—		(162)		—		(162)



Balance at March 31, 2021	$	199	$	2,456	$	(162)	$	6,267	$	(3,335)	$	5,425	$	4	$	5,429


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

Comprehensive loss, net	—		—		—		(2)		(138)		(140)		—		(140)
Cash dividends declared - common(3)	—		—		—		(54)		—		(54)		—		(54)
Cash dividends declared - preferred(4)	—		—		—		(4)		—		(4)		—		(4)


Stock option and incentive plans, net	—		4		—		—		—		4		—		4


Cancellation of treasury stock	(2)		(74)		76		—		—		—		—		—


Balance at March 31, 2020	$	213	$	2,712	$	—	$	6,252	$	(3,784)	$	5,393	$	7	$	5,400

_____________

(1)Common Stock has a par value of $1 per share.

(2)Refer to Note 17 - Other Comprehensive Income (Loss) for the components of AOCL.

(3)Cash dividends declared on common stock for the three months ended March 31, 2021 and 2020 were $0.25 per share, respectively.

(4)Cash dividends declared on preferred stock for the three months ended March 31, 2021 and 2020 were $20.00 per share, respectively.

Summary of treasury stock purchases

The following is a summary of the purchases of common stock during 2021:


	Shares	Amount
Balance at December 31, 2020	—	$	—
Purchases(1)	6,704	162
Cancellations	—	—
Balance at March 31, 2021	6,704	$	162

_____________

(1)Includes associated fees.

Shareholders' Equity of Xerox (Tables)

3 Months Ended

Mar. 31, 2021

Schedule of stockholders equity

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


	Common Stock(1)		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL(2)		Xerox Holdings Shareholders’ Equity		Non-controlling Interests		Total Equity
Balance at December 31, 2020	$	198	$	2,445	$	—	$	6,281	$	(3,332)	$	5,592	$	4	$	5,596

Comprehensive income (loss), net	—		—		—		39		(3)		36		—		36
Cash dividends declared - common(3)	—		—		—		(49)		—		(49)		—		(49)
Cash dividends declared - preferred(4)	—		—		—		(4)		—		(4)		—		(4)


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

Payments to acquire treasury stock, including fees	—		—		(162)		—		—		(162)		—		(162)



Balance at March 31, 2021	$	199	$	2,456	$	(162)	$	6,267	$	(3,335)	$	5,425	$	4	$	5,429


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

Comprehensive loss, net	—		—		—		(2)		(138)		(140)		—		(140)
Cash dividends declared - common(3)	—		—		—		(54)		—		(54)		—		(54)
Cash dividends declared - preferred(4)	—		—		—		(4)		—		(4)		—		(4)


Stock option and incentive plans, net	—		4		—		—		—		4		—		4


Cancellation of treasury stock	(2)		(74)		76		—		—		—		—		—


Balance at March 31, 2020	$	213	$	2,712	$	—	$	6,252	$	(3,784)	$	5,393	$	7	$	5,400

_____________

(1)Common Stock has a par value of $1 per share.

(2)Refer to Note 17 - Other Comprehensive Income (Loss) for the components of AOCL.

(3)Cash dividends declared on common stock for the three months ended March 31, 2021 and 2020 were $0.25 per share, respectively.

(4)Cash dividends declared on preferred stock for the three months ended March 31, 2021 and 2020 were $20.00 per share, respectively.

XEROX CORPORATION

Schedule of stockholders equity

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


	Additional Paid-in Capital		Retained Earnings		AOCL(1)		Xerox Shareholder's Equity		Non-controlling Interests		Total Equity
Balance at December 31, 2020	$	4,879	$	5,834	$	(3,332)	$	7,381	$	4	$	7,385

Comprehensive income (loss), net	—		41		(3)		38		—		38


Dividends declared to parent	—		(201)		—		(201)		—		(201)
Intercompany loan capitalization(2)	(1,494)		—		—		(1,494)		—		(1,494)
Transfers to parent	(34)		—		—		(34)		—		(34)









Balance at March 31, 2021	$	3,351	$	5,674	$	(3,335)	$	5,690	$	4	$	5,694


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

Comprehensive loss, net	—		(2)		(138)		(140)		—		(140)


Dividends declared to parent	—		(290)		—		(290)		—		(290)
Transfers from parent	238		—		—		238		—		238








Balance at March 31, 2020	$	3,504	$	5,955	$	(3,784)	$	5,675	$	7	$	5,682

_____________

(1)Refer to Note 17 - Other Comprehensive Income (Loss) for the components of AOCL.

(2)Refer to Note 11- Debt for information regarding capitalization of balance to Intercompany Loan with Xerox Holdings Corporation.

Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 2021

Equity [Abstract]

Schedule of other comprehensive (loss) income

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


	Three Months Ended March 31,
		2021	2020
			Pre-tax		Net of Tax		Pre-tax		Net of Tax
Translation Adjustments Losses			$	(52)	$	(51)	$	(204)	$	(197)
Unrealized (Losses) Gains
Changes in fair value of cash flow hedges (losses) gains			(10)		(8)		7		4
Changes in cash flow hedges reclassed to earnings(1)			1		1		1		1

Net Unrealized (Losses) Gains			(9)		(7)		8		5

Defined Benefit Plans Gains (Losses)
Net actuarial/prior service gains (losses)			43		32		(12)		(9)
Prior service amortization(2)			(17)		(12)		(19)		(14)
Actuarial loss amortization/settlement(2)			35		26		40		30

Other gains(3)			9		9		47		47
Changes in Defined Benefit Plans Gains			70		55		56		54



Other Comprehensive Income (Loss) Attributable to Xerox Holdings/Xerox			$	9	$	(3)	$	(140)	$	(138)

____________

(1)Reclassified to Cost of sales - refer to Note 12 - Financial Instruments for additional information regarding our cash flow hedges.

(2)Reclassified to Total Net Periodic Benefit Cost - refer to Note 14 - Employee Benefit Plans for additional information.

(3)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:


	March 31, 2021		December 31, 2020
Cumulative translation adjustments	$	(1,771)	$	(1,720)
Other unrealized (losses) gains, net	(5)		2
Benefit plans net actuarial losses and prior service credits	(1,559)		(1,614)
Total Accumulated Other Comprehensive Loss Attributable to Xerox Holdings/Xerox	$	(3,335)	$	(3,332)

Earnings (Loss) per Share (Tables)

3 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Basic and diluted earnings per share

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


	Three Months Ended March 31,
		2021		2020
Basic Earnings (Loss) per Share
Net Income (Loss) Attributable to Xerox Holdings		$	39	$	(2)
Accrued dividends on preferred stock		(4)		(4)


Adjusted Net income (loss) available to common shareholders		$	35	$	(6)

Weighted average common shares outstanding		195,985		212,750




Basic Earnings (Loss) per Share		$	0.18	$	(0.03)

Diluted Earnings (Loss) per Share
Net Income (Loss) Attributable to Xerox Holdings		$	39	$	(2)
Accrued dividends on preferred stock		(4)		(4)


Adjusted Net income (loss) available to common shareholders		$	35	$	(6)

Weighted average common shares outstanding		195,985		212,750
Common shares issuable with respect to:
Stock options		—		—
Restricted stock and performance shares		2,181		—
Convertible preferred stock		—		—

Adjusted weighted average common shares outstanding		198,166		212,750




Diluted Earnings (Loss) per Share		$	0.18	$	(0.03)

The following securities were not included in the computation of diluted earnings per share as they were either contingently issuable shares or shares that if included would have been anti-dilutive:
Stock options		693		849
Restricted stock and performance shares		5,327		6,478
Convertible preferred stock		6,742		6,742
Total Anti-Dilutive Securities		12,762		14,069

Dividends per Common Share		$	0.25	$	0.25

Contingencies and Litigation (Tables)

3 Months Ended

Mar. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Schedule of loss contingencies by contingency

Below is a summary of our Brazilian tax contingencies:


	March 31, 2021		December 31, 2020
Tax contingency - unreserved	$	335	$	355
Escrow cash deposits	35		39
Surety bonds	96		112
Letters of credit	72		78
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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=121557415&loc=d3e14472-108349

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

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

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

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

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

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

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

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

+ Details

Basis of Presentation (Details)	3 Months Ended
Basis of Presentation (Details)	Dec. 31, 2020
Minimum
Goodwill [Line Items]
Percentage of fair value over carrying value, goodwill	15.00%
Maximum
Goodwill [Line Items]
Percentage of fair value over carrying value, goodwill	20.00%

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Disaggregation of Revenue [Line Items]
Total Revenues	$ 1,710	$ 1,860
Equipment
Disaggregation of Revenue [Line Items]
Total Revenues	381	325
Supplies, paper and other sales
Disaggregation of Revenue [Line Items]
Total Revenues	221	240
Maintenance agreements
Disaggregation of Revenue [Line Items]
Total Revenues	435	529
Service arrangements
Disaggregation of Revenue [Line Items]
Total Revenues	489	566
Rental and other
Disaggregation of Revenue [Line Items]
Total Revenues	129	141
Financing
Disaggregation of Revenue [Line Items]
Total Revenues	55	59
Sales
Disaggregation of Revenue [Line Items]
Total Revenues	602	565
Sales \| Direct equipment lease
Disaggregation of Revenue [Line Items]
Total Revenues	147	126
Sales \| Distributors & resellers
Disaggregation of Revenue [Line Items]
Total Revenues	254	223
Sales \| Customer direct
Disaggregation of Revenue [Line Items]
Total Revenues	201	216
United States
Disaggregation of Revenue [Line Items]
Total Revenues	974	1,114
Europe
Disaggregation of Revenue [Line Items]
Total Revenues	499	481
Canada
Disaggregation of Revenue [Line Items]
Total Revenues	93	108
Other
Disaggregation of Revenue [Line Items]
Total Revenues	$ 144	$ 157

Revenue - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
Revenue - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Revenue, Contract Assets, Liabilities and Costs[Line Items]
Contract liabilities	$ 126		$ 130
Contract liability amortization period (months)	30 months
Deferred incremental direct costs, amortization period (years)	4 years
Deferred incremental direct costs net of accumulated amortization	$ 140		145
Contract Fulfillment Costs and Inducements
Revenue, Contract Assets, Liabilities and Costs[Line Items]
Capitalized contract costs, amounts deferred	17		$ 13
Capitalized contract costs, amortization	$ 1	$ 1

Revenue - Incremental Direct Costs (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenue from Contract with Customer [Abstract]
Incremental direct costs of obtaining a contract	$ 13	$ 15
Amortization of incremental direct costs	$ 19	$ 21

Lessor (Details) - USD ($) $ in Millions	3 Months Ended
Lessor (Details) - USD ($) $ in Millions	Mar. 31, 2021	Mar. 31, 2020
Leases [Abstract]
Revenue from sales type leases	$ 147	$ 126
Interest income on lease receivables	55	59
Lease income - operating leases	67	86
Variable lease income	15	22
Total Lease income	284	293
Profit at lease commencement, sales type leases	$ 56	$ 43

Supplementary Financial Information - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Supplemental Financial Information [Abstract]
Cash and cash equivalents	$ 2,379	$ 2,625
Restricted cash
Litigation deposits in Brazil	38	42
Escrow and cash collections related to secured borrowing arrangements	43	22
Other restricted cash	1	2
Total Restricted cash	82	66
Cash, cash equivalents and restricted cash	$ 2,461	$ 2,691

Supplementary Financial Information - Restricted Cash Balance Sheet Location (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Restricted Cash and Cash Equivalents Items [Line Items]
Total Restricted cash	$ 82	$ 66
Other current assets
Restricted Cash and Cash Equivalents Items [Line Items]
Total Restricted cash	44	23
Other long-term assets
Restricted Cash and Cash Equivalents Items [Line Items]
Total Restricted cash	$ 38	$ 43

Supplementary Financial Information - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Supplemental Financial Information [Abstract]
Provision for receivables	$ 11	$ 74
Provision for inventory	9	6
Provision for product warranty	2	2
Depreciation of buildings and equipment	19	21
Depreciation and obsolescence of equipment on operating leases	42	51
Amortization of internal use software	10	11
Amortization of acquired intangible assets	15	11
Amortization of customer contract costs	20	22
Cost of additions to land, buildings and equipment	8	18
Cost of additions to internal use software	9	5
Common stock dividends - Xerox Holdings Corporation	50	54
Preferred stock dividends - Xerox Holdings Corporation	4	4
Repurchases related to stock-based compensation - Xerox Holdings Corporation	4	7
Restricted Cash and Cash Equivalents Items [Line Items]
Amortization of Intangible Assets	15	11
XEROX CORPORATION
Supplemental Financial Information [Abstract]
Amortization of acquired intangible assets	14	11
Restricted Cash and Cash Equivalents Items [Line Items]
Amortization of Intangible Assets	$ 14	$ 11

Accounts Receivable, Net - Summary (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	Mar. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for doubtful accounts	$ (68)	$ (60)	$ (69)	$ (68)	$ (69)	$ (55)
Accounts receivable, net				781	883
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance	68	60	$ 69
Provision for receivables	4	8
Charge-offs	(5)	(2)
Recoveries and other	$ 0	$ (1)
Credit Concentration Risk \| Accounts Receivable
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Concentration risk (percentage)	8.00%		7.20%
Accounts Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Invoiced				637	735
Accrued				212	217
Allowance for doubtful accounts	$ (68)		$ (69)	(68)	(69)
Accounts receivable, net				$ 781	$ 883
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance	$ 68		$ 69

Accounts Receivable, Net - Accounts Receivable Sales Arrangements (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Accounts Receivable Sales Arrangements [Abstract]
Uncollected accounts receivable sold and derecognized	$ 93		$ 136
Accounts Receivable
Accounts Receivable Sales Arrangements [Abstract]
Accounts receivable sales	$ 107	$ 53

Finance Receivables, Net - Summary (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019
Financing Receivable, Allowance for Credit Loss [Line Items]
Gross receivables	$ 3,596	$ 3,691
Unearned income	(384)	(393)
Total	3,212	3,298
Residual values	0	0
Allowance for doubtful accounts	(135)	(133)	$ (146)	$ (89)
Finance receivables, net	3,077	3,165
Less: Billed portion of finance receivables, net	92	99
Less: Current portion of finance receivables not billed, net	1,065	1,082
Finance receivables due after one year, net	$ 1,920	$ 1,984
Finance receivables lease portfolio -low - years	2 years
Finance lease portfolio average maturity - high - years	3 years
Credit Concentration Risk \| Financing Receivable
Financing Receivable, Allowance for Credit Loss [Line Items]
Concentration risk (percentage)	4.20%	4.00%

Finance Receivables, Net - Allowance for Credit Losses (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Financing Receivable, Allowance for Credit Loss [Line Items]
Provision	$ 6	$ 66
Reserves as a percentage of receivables		4.00%
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	133	$ 89
Provision	6	66
Charge-offs	(3)	(8)
Recoveries and other	(1)	(1)
Ending Balance	135	146
Finance receivables collectively evaluated for impairment	$ 3,212	3,287
Loss rates of customers with investment grade credit quality	1.00%
Loss rates of customers with non investment grade credit quality, low range	2.00%
Loss rates of customers with non investment grade credit quality, high range	5.00%
Loss rates of customers with substandard doubtful credit quality - low	7.00%
Loss rates of customers with substandard doubtful credit quality - high	10.00%
COVID-19 Pandemic
Financing Receivable, Allowance for Credit Loss [Line Items]
Provision		60
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Provision		60
United States
Financing Receivable, Allowance for Credit Loss [Line Items]
Provision	$ 2	35
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	77	59
Provision	2	35
Charge-offs	(2)	(3)
Recoveries and other	1	0
Ending Balance	78	91
Finance receivables collectively evaluated for impairment	1,806	1,866
Canada
Financing Receivable, Allowance for Credit Loss [Line Items]
Provision	1	6
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	15	10
Provision	1	6
Charge-offs	0	(1)
Recoveries and other	0	0
Ending Balance	16	15
Finance receivables collectively evaluated for impairment	288	289
Europe
Financing Receivable, Allowance for Credit Loss [Line Items]
Provision	3	25
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	41	20
Provision	3	25
Charge-offs	(1)	(4)
Recoveries and other	(2)	(1)
Ending Balance	41	40
Finance receivables collectively evaluated for impairment	$ 1,118	$ 1,132

Finance Receivables, Net - Credit Quality Indicators (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Financing Receivable, Credit Quality Indicator [Line Items]
CY	$ 337	$ 1,140
CY - 1	1,058	1,005
CY - 2	901	680
CY - 3	574	337
CY - 4	262	116
Prior	80	20
Total	3,212	3,298
United States (Direct):
Financing Receivable, Credit Quality Indicator [Line Items]
CY	81	308
CY - 1	294	288
CY - 2	262	207
CY - 3	178	110
CY - 4	88	45
Prior	32	9
Total	935	967
United States (Indirect):
Financing Receivable, Credit Quality Indicator [Line Items]
CY	108	341
CY - 1	320	273
CY - 2	247	159
CY - 3	133	67
CY - 4	53	16
Prior	10	0
Total	871	856
Canada
Financing Receivable, Credit Quality Indicator [Line Items]
CY	24	101
CY - 1	96	83
CY - 2	77	60
CY - 3	53	37
CY - 4	29	14
Prior	9	2
Total	288	297
Europe
Financing Receivable, Credit Quality Indicator [Line Items]
CY	124	390
CY - 1	348	361
CY - 2	315	254
CY - 3	210	123
CY - 4	92	41
Prior	29	9
Total	1,118	1,178
Low Credit Risk
Financing Receivable, Credit Quality Indicator [Line Items]
CY	179	591
CY - 1	560	502
CY - 2	461	362
CY - 3	310	176
CY - 4	135	64
Prior	42	9
Total	1,687	1,704
Low Credit Risk \| United States (Direct):
Financing Receivable, Credit Quality Indicator [Line Items]
CY	46	164
CY - 1	154	151
CY - 2	134	128
CY - 3	111	71
CY - 4	56	32
Prior	21	4
Total	522	550
Low Credit Risk \| United States (Indirect):
Financing Receivable, Credit Quality Indicator [Line Items]
CY	57	193
CY - 1	194	140
CY - 2	140	79
CY - 3	69	33
CY - 4	26	7
Prior	4	0
Total	490	452
Low Credit Risk \| Canada
Financing Receivable, Credit Quality Indicator [Line Items]
CY	11	37
CY - 1	36	34
CY - 2	31	24
CY - 3	21	10
CY - 4	7	5
Prior	3	1
Total	109	111
Low Credit Risk \| Europe
Financing Receivable, Credit Quality Indicator [Line Items]
CY	65	197
CY - 1	176	177
CY - 2	156	131
CY - 3	109	62
CY - 4	46	20
Prior	14	4
Total	566	591
Average Credit Risk
Financing Receivable, Credit Quality Indicator [Line Items]
CY	121	399
CY - 1	360	418
CY - 2	362	257
CY - 3	211	125
CY - 4	97	39
Prior	27	7
Total	1,178	1,245
Average Credit Risk \| United States (Direct):
Financing Receivable, Credit Quality Indicator [Line Items]
CY	17	54
CY - 1	53	95
CY - 2	89	52
CY - 3	43	26
CY - 4	20	8
Prior	6	2
Total	228	237
Average Credit Risk \| United States (Indirect):
Financing Receivable, Credit Quality Indicator [Line Items]
CY	42	129
CY - 1	110	124
CY - 2	99	71
CY - 3	56	31
CY - 4	24	8
Prior	5	0
Total	336	363
Average Credit Risk \| Canada
Financing Receivable, Credit Quality Indicator [Line Items]
CY	10	46
CY - 1	44	39
CY - 2	36	26
CY - 3	23	17
CY - 4	15	6
Prior	4	1
Total	132	135
Average Credit Risk \| Europe
Financing Receivable, Credit Quality Indicator [Line Items]
CY	52	170
CY - 1	153	160
CY - 2	138	108
CY - 3	89	51
CY - 4	38	17
Prior	12	4
Total	482	510
High Credit Risk
Financing Receivable, Credit Quality Indicator [Line Items]
CY	37	150
CY - 1	138	85
CY - 2	78	61
CY - 3	53	36
CY - 4	30	13
Prior	11	4
Total	347	349
High Credit Risk \| United States (Direct):
Financing Receivable, Credit Quality Indicator [Line Items]
CY	18	90
CY - 1	87	42
CY - 2	39	27
CY - 3	24	13
CY - 4	12	5
Prior	5	3
Total	185	180
High Credit Risk \| United States (Indirect):
Financing Receivable, Credit Quality Indicator [Line Items]
CY	9	19
CY - 1	16	9
CY - 2	8	9
CY - 3	8	3
CY - 4	3	1
Prior	1	0
Total	45	41
High Credit Risk \| Canada
Financing Receivable, Credit Quality Indicator [Line Items]
CY	3	18
CY - 1	16	10
CY - 2	10	10
CY - 3	9	10
CY - 4	7	3
Prior	2	0
Total	47	51
High Credit Risk \| Europe
Financing Receivable, Credit Quality Indicator [Line Items]
CY	7	23
CY - 1	19	24
CY - 2	21	15
CY - 3	12	10
CY - 4	8	4
Prior	3	1
Total	$ 70	$ 77

Finance Receivables, Net - Aging of Billed Finance Receivables (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Financing Receivable, Past Due [Line Items]
Total	$ 3,212	$ 3,298
Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	96	103
Unbilled Revenues
Financing Receivable, Past Due [Line Items]
Total	3,116	3,195
United States
Financing Receivable, Past Due [Line Items]
Total	1,806	1,823
United States \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	70	76
United States \| Unbilled Revenues
Financing Receivable, Past Due [Line Items]
Total	1,736	1,747
Canada
Financing Receivable, Past Due [Line Items]
Total	288	297
Canada \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	9	10
Canada \| Unbilled Revenues
Financing Receivable, Past Due [Line Items]
Total	279	287
Europe
Financing Receivable, Past Due [Line Items]
Total	1,118	1,178
Europe \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	17	17
Europe \| Unbilled Revenues
Financing Receivable, Past Due [Line Items]
Total	1,101	1,161
Current \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	66	74
Current \| United States \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	48	54
Current \| Canada \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	6	8
Current \| Europe \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	12	12
31-90 Days Past Due \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	16	15
31-90 Days Past Due \| United States \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	11	10
31-90 Days Past Due \| Canada \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	2	2
31-90 Days Past Due \| Europe \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	3	3
>90 Days Past Due \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	14	14
>90 Days Past Due \| United States \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	11	12
>90 Days Past Due \| Canada \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	1	0
>90 Days Past Due \| Europe \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	2	2
>90 Days and Accruing
Financing Receivable, Past Due [Line Items]
Financing receivable, 90 days or more past due, still accruing	100	109
>90 Days and Accruing \| United States
Financing Receivable, Past Due [Line Items]
Financing receivable, 90 days or more past due, still accruing	70	74
>90 Days and Accruing \| Canada
Financing Receivable, Past Due [Line Items]
Financing receivable, 90 days or more past due, still accruing	13	12
>90 Days and Accruing \| Europe
Financing Receivable, Past Due [Line Items]
Financing receivable, 90 days or more past due, still accruing	17	23
Direct
Financing Receivable, Past Due [Line Items]
Total	935	967
Direct \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	45	48
Direct \| Unbilled Revenues
Financing Receivable, Past Due [Line Items]
Total	890	919
Direct \| Current \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	30	33
Direct \| 31-90 Days Past Due \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	7	6
Direct \| >90 Days Past Due \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	8	9
Direct \| >90 Days and Accruing
Financing Receivable, Past Due [Line Items]
Financing receivable, 90 days or more past due, still accruing	70	74
Indirect
Financing Receivable, Past Due [Line Items]
Total	871	856
Indirect \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	25	28
Indirect \| Unbilled Revenues
Financing Receivable, Past Due [Line Items]
Total	846	828
Indirect \| Current \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	18	21
Indirect \| 31-90 Days Past Due \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	4	4
Indirect \| >90 Days Past Due \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	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	Mar. 31, 2021	Dec. 31, 2020	Jul. 31, 2020
Financing Receivable, Allowance for Credit Loss [Line Items]
Finance receivables, net	$ 3,077	$ 3,165
Special Purpose Entity (SPE) \| Secured Loan Agreement 1
Financing Receivable, Allowance for Credit Loss [Line Items]
Finance receivables, net	248
Special Purpose Entity (SPE) \| Secured Loan Agreement 2
Financing Receivable, Allowance for Credit Loss [Line Items]
Finance receivables, net	$ 543
Special Purpose Entity (SPE)
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivables sold		$ 610	$ 355

Inventories and Equipment on Operating Leases, Net - Summary of Inventories (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Inventories, net [Abstract]
Finished goods	$ 697	$ 707
Work-in-process	48	43
Raw materials	96	93
Total Inventories	$ 841	$ 843

Inventories and Equipment on Operating Leases, Net - Equipment on Operating Leases and Accumulated Depreciation (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Inventories and Equipment on Operating Leases, Net [Abstract]
Equipment on operating leases	$ 1,332	$ 1,376
Accumulated depreciation	(1,055)	(1,080)
Equipment on operating leases, net	$ 277	$ 296

Inventories and Equipment on Operating Leases, Net - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Inventories and Equipment on Operating Leases, Net [Abstract]
Contingent rentals on operating lease, total	$ 15	$ 22

Lessee - Additional Information (Details) $ in Millions	Mar. 31, 2021 USD ($) lease option
Leases [Abstract]
Remaining terms of leases (years)	12 years
Number of additional leases not yet commenced \| lease	1
Lease obligation not yet commenced	$ 8
ROU asset not yet commenced	$ 8
Operating lease, not yet commenced, term of lease	6 years
Number of options to terminate lease \| option	1
Operating lease, not yet commenced, option to terminate, period	3 years

Lessee - Components of Lease Expense (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Leases [Abstract]
Operating lease expense	$ 27	$ 28
Short-term lease expense	5	5
Variable lease expense	12	12
Sublease income	(1)	0
Total Lease expense	$ 43	$ 45

Lessee - Operating Lease ROU Asset, Net and Operating Lease Liabilities (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Operating lease, Other long-term assets	$ 287	$ 310
Operating lease, Accrued expenses and other current liabilities	79	83
Operating lease, Other long-term liabilities	231	250
Total Operating lease liabilities	$ 310	$ 333
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

Restructuring Programs - Additional Information (Details) $ in Millions	3 Months Ended
	Mar. 31, 2021 USD ($) employee	Mar. 31, 2020 USD ($)	Dec. 31, 2020 USD ($)
Restructuring Cost and Reserve [Line Items]
Net restructuring and asset impairment charges	$ 21
Restructuring charges	$ 25
Headcount reductions, number of employees \| employee	350
Restructuring charges, net reversals	$ 4
Payments for restructuring	27	$ 35
Restructuring related reserve	13		$ 21
HCL Technologies
Restructuring Cost and Reserve [Line Items]
Payments for restructuring	3	$ 0
Severance and Related Costs
Restructuring Cost and Reserve [Line Items]
Net restructuring and asset impairment charges	10
Restructuring charges	14
Restructuring charges, net reversals	4
Other Contractual Termination Costs
Restructuring Cost and Reserve [Line Items]
Net restructuring and asset impairment charges	1
Restructuring charges	1
Restructuring charges, net reversals	0
Asset Impairments
Restructuring Cost and Reserve [Line Items]
Net restructuring and asset impairment charges	10
Restructuring charges	10
Restructuring charges, net reversals	$ 0

Restructuring Programs - Information Related to Restructuring Program Activity (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Restructuring Reserve [Roll Forward]
Balance at beginning of period	$ 82
Provision	25
Reversals	(4)
Net current period charges	21
Charges against reserve and currency	(40)	$ (35)
Balance at end of period	63
Leased right-of-use asset write-off	1
Owned asset write-off	9
Severance and Related Costs
Restructuring Reserve [Roll Forward]
Balance at beginning of period	78
Provision	14
Reversals	(4)
Net current period charges	10
Charges against reserve and currency	(29)
Balance at end of period	59
Other Contractual Termination Costs
Restructuring Reserve [Roll Forward]
Balance at beginning of period	4
Provision	1
Reversals	0
Net current period charges	1
Charges against reserve and currency	(1)
Balance at end of period	4
Asset Impairments
Restructuring Reserve [Roll Forward]
Balance at beginning of period	0
Provision	10
Reversals	0
Net current period charges	10
Charges against reserve and currency	(10)
Balance at end of period	$ 0

Restructuring Programs - Summary Of Reconciliation to Statements of Cash Flows (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Restructuring and Related Activities [Abstract]
Charges against reserve and currency	$ (40)	$ (35)
Effects of foreign currency and other non-cash items	13	0
Restructuring cash payments	$ (27)	$ (35)

Restructuring Programs - Certain Related Costs Incurred in Connection with Restructuring Programs (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Restructuring Cost and Reserve [Line Items]
Related restructuring costs	$ (4)	$ 12
Retention related severance/bonuses
Restructuring Cost and Reserve [Line Items]
Related restructuring costs	(4)	7
Contractual severance costs
Restructuring Cost and Reserve [Line Items]
Related restructuring costs	0	4
Consulting and other costs
Restructuring Cost and Reserve [Line Items]
Related restructuring costs	$ 0	$ 1

Debt - Narrative (Details) - USD ($) $ in Millions		1 Months Ended		3 Months Ended
Debt - Narrative (Details) - USD ($) $ in Millions	Aug. 24, 2020	Feb. 28, 2021	Aug. 31, 2020	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	Jul. 31, 2020
Secured Borrowings and Collateral [Abstract]
Interest payable				$ 10
Interest expense				52	$ 51
2025 Senior Notes \| Senior Notes
Secured Borrowings and Collateral [Abstract]
Debt value	$ 200		$ 550
Debt interest rate, percent			5.00%
Issuance price	100.75%
2028 Senior Notes \| Senior Notes
Secured Borrowings and Collateral [Abstract]
Debt value	$ 200		$ 550
Debt interest rate, percent			5.50%
Issuance price	102.50%
2025 And 2028 Senior Notes \| Senior Notes
Secured Borrowings and Collateral [Abstract]
Proceeds, net of fees and expenses	$ 405		$ 1,089
Related party debt				1,494
Xerox Holdings Corporation \| 2025 And 2028 Senior Notes \| Senior Notes
Secured Borrowings and Collateral [Abstract]
Proceeds, net of fees and expenses		$ 1,494	$ 1,494
XEROX CORPORATION \| 2020 Senior Notes \| Senior Notes
Secured Borrowings and Collateral [Abstract]
Interest expense				$ 20
Special Purpose Entity (SPE)
Secured Borrowings and Collateral [Abstract]
Effective interest rate				1.69%
Secured debt							$ 340
Special Purpose Entity (SPE)
Secured Borrowings and Collateral [Abstract]
Financing receivables sold						$ 610	355
Effective interest rate				1.73%
Secured debt						$ 500
Special Purpose Entity (SPE) \| Special Purpose Entity (SPE)
Secured Borrowings and Collateral [Abstract]
Net book value of rights to payments under operating leases sold							$ 10

Debt - Special Purpose Entity (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Billed portion of finance receivables, net	$ 4,000,000	$ 4,000,000
Finance receivables, net	1,065,000,000	1,082,000,000
Finance receivables due after one year, net	1,920,000,000	1,984,000,000
Equipment on operating leases, net	277,000,000	296,000,000
Total Assets	14,272,000,000	14,741,000,000
Current portion of long-term debt, net	678,000,000	394,000,000
Long-term debt	3,674,000,000	4,050,000,000
Total Liabilities	8,629,000,000	8,931,000,000
Special Purpose Entity (SPE)
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Billed portion of finance receivables, net	25,000,000	28,000,000
Finance receivables, net	326,000,000	350,000,000
Finance receivables due after one year, net	440,000,000	510,000,000
Equipment on operating leases, net	6,000,000	8,000,000
Restricted cash	43,000,000	22,000,000
Total Assets	840,000,000	918,000,000
Current portion of long-term debt, net	380,000,000	394,000,000
Long-term debt	290,000,000	370,000,000
Total Liabilities	670,000,000	$ 764,000,000
Debt issuance costs	$ 3,000,000

Debt - Interest Expense and Income (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Debt Instrument [Line Items]
Interest expense	$ 52	$ 51
Interest income	56	$ 67
2020 Senior Notes \| Senior Notes \| XEROX CORPORATION
Debt Instrument [Line Items]
Interest expense	$ 20

Financial Instruments - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Derivative [Line Items]
Notional amount	$ 968		$ 1,161
Average maturity of foreign exchange hedging contract - within three months (as a percent of total contracts)	78.00%
Average maturity of foreign exchange hedging contract - within three and six months (as a percent of total contracts)	11.00%
Average maturity of foreign exchange hedging contract - within six and twelve months (as a percent of total contracts)	11.00%
Net asset fair value	$ (10)		2
Net loss recorded in AOCL expected to be reclassified to net income in the future	(5)
Foreign currency transaction losses, before tax	(2)	$ (2)
Derivatives Designated as Hedging Instruments
Derivative [Line Items]
Net asset fair value	(7)		2
Cash Flow Hedging \| Foreign exchange contracts - forwards \| Cost of Sales
Derivative [Line Items]
Hedge ineffectiveness	0	0
Derivative, underlying exposure	0	$ 0
Cash Flow Hedging \| Derivatives Designated as Hedging Instruments
Derivative [Line Items]
Net asset fair value	$ (7)		$ 2

Financial Instruments - Summary of Derivative Instruments Fair Value (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative Assets	$ 4	$ 7
Derivative Liabilities	(14)	(5)
Net derivative asset (liability)	(10)	2
Derivatives Designated as Hedging Instruments
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Net derivative asset (liability)	(7)	2
Derivatives Designated as Hedging Instruments \| Other current assets \| Foreign exchange contracts - forwards
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative Assets	1	3
Derivatives Designated as Hedging Instruments \| Other current assets \| Foreign currency options
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative Assets	0	1
Derivatives Designated as Hedging Instruments \| Accrued expenses and other current liabilities \| Foreign exchange contracts - forwards
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative Liabilities	(8)	(2)
Not Designated as Hedging Instrument \| Foreign exchange contracts - forwards
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Net derivative asset (liability)	(3)	0
Not Designated as Hedging Instrument \| Other current assets \| Foreign exchange contracts - forwards
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative Assets	3	3
Not Designated as Hedging Instrument \| Accrued expenses and other current liabilities \| Foreign exchange contracts - forwards
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative Liabilities	$ (6)	$ (3)

Financial Instruments - Summary of Derivative Instruments Gain (Losses) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Interest Rate Contract \| Fair Value Hedges \| Interest Expense
Summary of Derivative Instruments Gains (Losses) [Abstract]
Derivative loss recognized in interest expense	$ 0	$ (1)
Hedged item gain recognized in interest expense	0	1
Foreign exchange contracts - forwards \| Cash Flow Hedges
Summary of Derivative Instruments Gains (Losses) [Abstract]
Derivative (loss) gain recognized in OCI (effective portion)	(10)	7
Foreign exchange contracts - forwards \| Cash Flow Hedges \| Cost of Sales
Summary of Derivative Instruments Gains (Losses) [Abstract]
Derivative loss reclassified from AOCL to income - Cost of sales (effective portion)	$ (1)	$ (1)

Financial Instruments - Summary of Gains (Losses) Non-designated Derivative Instruments (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Foreign exchange contracts - forwards \| Other expense – Currency (losses) gains, net \| Not Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on non-designated derivative instruments	$ (18)	$ 14

Fair Value of Financial Assets and Liabilities - Recurring (Details) - Recurring - Level 2 - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Assets
Deferred compensation plan investments in mutual funds	$ 17	$ 18
Total	21	25
Liabilities
Deferred compensation plan liabilities	17	17
Total	31	22
Foreign exchange contracts - forwards
Assets
Foreign currency contracts - assets	4	6
Liabilities
Foreign exchange contracts - forwards	14	5
Foreign currency options
Assets
Foreign currency contracts - assets	$ 0	$ 1

Fair Value of Financial Assets and Liabilities - Nonrecurring (Details) - Nonrecurring - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	$ 2,379	$ 2,625
Accounts receivable, net	781	883
Short-term debt and current portion of long-term debt	678	394
Long-term debt	3,674	4,050
Carrying Amount \| Xerox Holdings Corporation
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	1,494	1,493
Carrying Amount \| XEROX CORPORATION
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	1,890	2,187
Carrying Amount \| Other Subsidiaries
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	290	370
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	2,379	2,625
Accounts receivable, net	781	883
Short-term debt and current portion of long-term debt	688	396
Long-term debt	3,842	4,266
Fair Value \| Xerox Holdings Corporation
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	1,558	1,596
Fair Value \| XEROX CORPORATION
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	1,992	2,298
Fair Value \| Other Subsidiaries
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	$ 292	$ 372

Employee Benefit Plans (Details) - USD ($)	3 Months Ended		12 Months Ended
Employee Benefit Plans (Details) - USD ($)	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Components of Net Periodic Benefit Costs:
Defined benefit pension cost	$ 0	$ 24,000,000
Forecast
Contributions [Abstract]
Expected reduction in defined contribution plan expense			$ 20,000,000
Pension Plan
Contributions [Abstract]
Defined benefit plan, contributions by employer	35,000,000	33,000,000		$ 139,000,000
Defined benefit plan, expected future employer contributions				130,000,000
Pension Plan \| U.S.
Components of Net Periodic Benefit Costs:
Service cost	0	1,000,000
Interest cost	18,000,000	23,000,000
Expected return on plan assets	(28,000,000)	(26,000,000)
Recognized net actuarial loss	5,000,000	7,000,000
Amortization of prior service credit	0	0
Recognized settlement loss	15,000,000	19,000,000
Recognized curtailment gain	0	0
Defined benefit pension cost	10,000,000	24,000,000
Defined contribution plans	0	5,000,000
Net Periodic Benefit Cost (Credit)	10,000,000	29,000,000
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss):
Net actuarial loss (gain)	(44,000,000)	12,000,000
Amortization of net actuarial (loss) gain	(20,000,000)	(26,000,000)
Amortization of net prior service credit	0	0
Total Recognized in Other Comprehensive Income (Loss)	(64,000,000)	(14,000,000)
Total Recognized in Net Periodic Benefit (Credit) Cost and Other Comprehensive Income (Loss)	(54,000,000)	15,000,000
Contributions [Abstract]
Defined benefit plan, contributions by employer	6,000,000	6,000,000		35,000,000
Defined benefit plan, expected future employer contributions				25,000,000
Pension Plan \| U.S. \| Qualified Plan
Contributions [Abstract]
Mandatory future contributions	0
Pension Plan \| Non-U.S.
Components of Net Periodic Benefit Costs:
Service cost	5,000,000	5,000,000
Interest cost	22,000,000	29,000,000
Expected return on plan assets	(52,000,000)	(47,000,000)
Recognized net actuarial loss	15,000,000	14,000,000
Amortization of prior service credit	0	0
Recognized settlement loss	0	0
Recognized curtailment gain	0	(1,000,000)
Defined benefit pension cost	(10,000,000)	0
Defined contribution plans	5,000,000	5,000,000
Net Periodic Benefit Cost (Credit)	(5,000,000)	5,000,000
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss):
Net actuarial loss (gain)	1,000,000	0
Amortization of net actuarial (loss) gain	(15,000,000)	(14,000,000)
Amortization of net prior service credit	0	0
Total Recognized in Other Comprehensive Income (Loss)	(14,000,000)	(14,000,000)
Total Recognized in Net Periodic Benefit (Credit) Cost and Other Comprehensive Income (Loss)	(19,000,000)	(9,000,000)
Contributions [Abstract]
Defined benefit plan, contributions by employer	29,000,000	27,000,000		104,000,000
Defined benefit plan, expected future employer contributions				105,000,000
Retiree Health
Components of Net Periodic Benefit Costs:
Service cost	1,000,000	1,000,000
Interest cost	2,000,000	2,000,000
Expected return on plan assets	0	0
Recognized net actuarial loss	0	0
Amortization of prior service credit	(17,000,000)	(19,000,000)
Recognized settlement loss	0	0
Recognized curtailment gain	0	0
Defined benefit pension cost	(14,000,000)	(16,000,000)
Net Periodic Benefit Cost (Credit)	(14,000,000)	(16,000,000)
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss):
Net actuarial loss (gain)	0	0
Amortization of net actuarial (loss) gain	0	0
Amortization of net prior service credit	17,000,000	19,000,000
Total Recognized in Other Comprehensive Income (Loss)	17,000,000	19,000,000
Total Recognized in Net Periodic Benefit (Credit) Cost and Other Comprehensive Income (Loss)	3,000,000	3,000,000
Contributions [Abstract]
Defined benefit plan, contributions by employer	$ 6,000,000	$ 5,000,000		25,000,000
Defined benefit plan, expected future employer contributions				$ 30,000,000

Shareholders' Equity of Xerox Holdings - Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	$ 5,596	$ 5,594
Comprehensive income (loss), net	36	(140)
Cash dividends declared - common	(49)	(54)
Cash dividends declared - preferred	(4)	(4)
Stock option and incentive plans, net	12	4
Payments to acquire treasury stock, including fees	(162)
Cancellation of treasury stock		0
Balance at end of period	$ 5,429	$ 5,400
Dividends per common share (in dollars per share)	$ 0.25	$ 0.25
Dividends per preferred share (in dollars per share)	$ 20.00	$ 20.00
Xerox Holdings/Xerox Shareholders’ Equity
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	$ 5,592	$ 5,587
Comprehensive income (loss), net	36	(140)
Cash dividends declared - common	(49)	(54)
Cash dividends declared - preferred	(4)	(4)
Stock option and incentive plans, net	12	4
Payments to acquire treasury stock, including fees	(162)
Balance at end of period	5,425	5,393
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	198	215
Stock option and incentive plans, net	1
Cancellation of treasury stock		(2)
Balance at end of period	$ 199	213
Par value (in dollars per share)	$ 1
Additional Paid-in Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	$ 2,445	2,782
Stock option and incentive plans, net	11	4
Cancellation of treasury stock		(74)
Balance at end of period	2,456	2,712
Treasury Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	0	(76)
Payments to acquire treasury stock, including fees	(162)
Cancellation of treasury stock	0	76
Balance at end of period	(162)	0
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	6,281	6,312
Comprehensive income (loss), net	39	(2)
Cash dividends declared - common	(49)	(54)
Cash dividends declared - preferred	(4)	(4)
Balance at end of period	6,267	6,252
AOCL
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	(3,332)	(3,646)
Comprehensive income (loss), net	(3)	(138)
Balance at end of period	(3,335)	(3,784)
Non-controlling Interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	4	7
Comprehensive income (loss), net	0	0
Balance at end of period	$ 4	$ 7

Shareholders' Equity of Xerox Holdings - Treasury Stock (Details) - USD ($) shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Increase (Decrease) In Treasury Stock [Roll Forward]
Beginning balance (in shares)	0
Ending balance (in shares)	6,704
Beginning balance	$ 0
Purchases	162
Cancellations		$ 0
Ending balance	$ 162
Treasury Stock
Increase (Decrease) In Treasury Stock [Roll Forward]
Beginning balance (in shares)	0
Purchases (in shares)	6,704
Cancellations (in shares)	0
Ending balance (in shares)	6,704
Beginning balance	$ 0
Purchases	162
Cancellations	0	$ 76
Ending balance	$ 162

Shareholders' Equity of Xerox (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	$ 5,596	$ 5,594
Comprehensive income (loss), net	36	(140)
Balance at end of period	5,429	5,400
XEROX CORPORATION
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	7,385	5,874
Comprehensive income (loss), net	38	(140)
Dividends declared to parent	(201)	(290)
Intercompany loan capitalization	(1,494)
Transfers (to) from Parent	(34)	238
Balance at end of period	5,694	5,682
Xerox Holdings/Xerox Shareholders’ Equity
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	5,592	5,587
Comprehensive income (loss), net	36	(140)
Balance at end of period	5,425	5,393
Xerox Holdings/Xerox Shareholders’ Equity \| XEROX CORPORATION
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	7,381	5,867
Comprehensive income (loss), net	38	(140)
Dividends declared to parent	(201)	(290)
Intercompany loan capitalization	(1,494)
Transfers (to) from Parent	(34)	238
Balance at end of period	5,690	5,675
Additional Paid-in Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	2,445	2,782
Balance at end of period	2,456	2,712
Additional Paid-in Capital \| XEROX CORPORATION
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	4,879	3,266
Intercompany loan capitalization	(1,494)
Transfers (to) from Parent	(34)	238
Balance at end of period	3,351	3,504
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	6,281	6,312
Comprehensive income (loss), net	39	(2)
Balance at end of period	6,267	6,252
Retained Earnings \| XEROX CORPORATION
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	5,834	6,247
Comprehensive income (loss), net	41	(2)
Dividends declared to parent	(201)	(290)
Balance at end of period	5,674	5,955
AOCL
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	(3,332)	(3,646)
Comprehensive income (loss), net	(3)	(138)
Balance at end of period	(3,335)	(3,784)
AOCL \| XEROX CORPORATION
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	(3,332)	(3,646)
Comprehensive income (loss), net	(3)	(138)
Balance at end of period	(3,335)	(3,784)
Non-controlling Interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	4	7
Comprehensive income (loss), net	0	0
Balance at end of period	4	7
Non-controlling Interests \| XEROX CORPORATION
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	4	7
Comprehensive income (loss), net		0
Balance at end of period	$ 4	$ 7

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

3 Months Ended

Mar. 31, 2021

Mar. 31, 2020

Accumulated Other Comprehensive Income (Loss) [Line Items]

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

^[1]

$ (3)

$ (138)

Translation adjustments losses

Accumulated Other Comprehensive Income (Loss) [Line Items]

Other comprehensive income (loss), pre-tax

(52)

(204)

Other Comprehensive Loss, Net

(51)

(197)

Unrealized (Losses) Gains

Accumulated Other Comprehensive Income (Loss) [Line Items]

Other comprehensive income (loss), pre-tax

(9)

Other Comprehensive Loss, Net

(7)

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

(10)

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

(8)

Reclassifications, pre-tax

Reclassifications, net of tax

Net actuarial/prior service gains (losses)

Accumulated Other Comprehensive Income (Loss) [Line Items]

Other comprehensive income (loss), pre-tax

(12)

Other Comprehensive Loss, Net

(9)

Prior service amortization

Accumulated Other Comprehensive Income (Loss) [Line Items]

Other comprehensive income (loss), pre-tax

(17)

(19)

Other Comprehensive Loss, Net

(12)

(14)

Actuarial loss amortization / settlement

Accumulated Other Comprehensive Income (Loss) [Line Items]

Other comprehensive income (loss), pre-tax

Other Comprehensive Loss, Net

Other gains

Accumulated Other Comprehensive Income (Loss) [Line Items]

Other comprehensive income (loss), pre-tax

Other Comprehensive Loss, Net

Changes in Defined Benefit Plans Gains

Accumulated Other Comprehensive Income (Loss) [Line Items]

Other comprehensive income (loss), pre-tax

Other Comprehensive Loss, Net

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

Accumulated Other Comprehensive Income (Loss) [Line Items]

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

(140)

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

$ (3)

$ (138)

[1]	Refer to Note 17 - Other Comprehensive Income (Loss) for gross components of Other comprehensive loss, net, reclassification adjustments out of Accumulated other comprehensive loss and related tax effects.

Other Comprehensive Income (Loss) - Accumulated Other Comprehensive Loss (AOCL) (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stockholders' equity	$ 5,429	$ 5,596	$ 5,400	$ 5,594
Cumulative translation adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stockholders' equity	(1,771)	(1,720)
Other unrealized (losses) gains, net
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stockholders' equity	(5)	2
Benefit plans net actuarial losses and prior service credits
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stockholders' equity	(1,559)	(1,614)
Total Accumulated Other Comprehensive Loss Attributable to Xerox Holdings/Xerox
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stockholders' equity	$ (3,335)	$ (3,332)	$ (3,784)	$ (3,646)

- Definition

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

+ References

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

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

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

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

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

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

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

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

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

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

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

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

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

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
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-URI http://asc.fasb.org/extlink&oid=115929471&loc=d3e21711-107793

Reference 15: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=121322162&loc=SL121327923-165333

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

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
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-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794

Reference 19: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6450520&loc=d3e32583-110901

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
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Reference 22: http://www.xbrl.org/2003/role/disclosureRef
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Reference 23: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Earnings (Loss) per Share - Computation of Basic and Diluted Earnings (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Basic Earnings (Loss) per Share
Net Income (Loss) Attributable to Xerox Holdings	$ 39	$ (2)
Accrued dividends on preferred stock	(4)	(4)
Adjusted Net income (loss) available to common shareholders	$ 35	$ (6)
Weighted average common shares outstanding (in shares)	195,985	212,750
Basic earnings (loss) per share (USD per share)	$ 0.18	$ (0.03)
Diluted Earnings (Loss) per Share
Net Income (Loss) Attributable to Xerox Holdings	$ 39	$ (2)
Accrued dividends on preferred stock	(4)	(4)
Adjusted Net income (loss) available to common shareholders	$ 35	$ (6)
Weighted average common shares outstanding (in shares)	195,985	212,750
Common shares issuable with respect to:
Adjusted Weighted average common shares outstanding (in shares)	198,166	212,750
Diluted earnings (loss) per share (USD per share)	$ 0.18	$ (0.03)
Stock options
Common shares issuable with respect to:
Common shares attributable to dilutive effect of share-based payments (in shares)	0	0
Restricted stock and performance shares
Common shares issuable with respect to:
Common shares attributable to dilutive effect of share-based payments (in shares)	2,181	0
Convertible preferred stock
Common shares issuable with respect to:
Common shares attributable to dilutive effect of share-based payments (in shares)	0	0

Earnings (Loss) per Share - Anti-Dilutive Securities (Details) - $ / shares shares in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive securities (in shares)	12,762	14,069
Dividends per common share (in dollars per share)	$ 0.25	$ 0.25
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive securities (in shares)	693	849
Restricted stock and performance shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive securities (in shares)	5,327	6,478
Convertible preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive securities (in shares)	6,742	6,742

Contingencies and Litigation - Brazilian Tax Contingencies (Details) - Brazil Contingencies - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Loss Contingencies [Line Items]
Tax contingency - unreserved	$ 335	$ 355
Escrow cash deposits	35	39
Surety bonds	96	112
Letters of credit	72	78
Liens on Brazilian assets	$ 0	$ 0

Contingencies and Litigation - Other Pending Litigation (Details) $ in Thousands			12 Months Ended
	Apr. 07, 2021 USD ($)	Dec. 13, 2019 USD ($)	Dec. 31, 2020 USD ($)	Mar. 31, 2021 USD ($)	Mar. 10, 2021 USD ($) request
Guarantor Obligations [Line Items]
Number of requests \| request					2
Ribbe v. Jacobson, et al. \| Subsequent Event
Guarantor Obligations [Line Items]
Loss contingency, damages sought	$ 1,500
Loss contingency, benefits sought	$ 10
HP Inc. \| Miami Firefighters Relief Pension Fund V. Icahn Et Al
Guarantor Obligations [Line Items]
Marketable securities, gain (loss)		$ 128,000
Xerox Holdings Corporation
Guarantor Obligations [Line Items]
Per-occurrence coverage					$ 1,000,000
Projected pandemic related losses			$ 300,000
Performance Guarantee
Guarantor Obligations [Line Items]
Maximum exposure, undiscounted				$ 277,000

Subsequent Event (Details) - Subsequent Event $ in Millions	1 Months Ended
Subsequent Event (Details) - Subsequent Event $ in Millions	Apr. 30, 2021 USD ($)
Subsequent Event [Line Items]
Upfront prepaid fixed royalty	$ 100
Upfront payments	$ 100
Expected timing of revenue recognition	2 years
Office Equipment Dealer
Subsequent Event [Line Items]
Acquisition	$ 30
Trademark
Subsequent Event [Line Items]
Duration of trademark use	2 years