0001770450-22-000020 | 10-Q | XBRL Viewer

Fair Value of Financial Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2022

Schedule of 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, 2022		December 31, 2021
Assets
Foreign exchange contracts - forwards	$	4	$	4

Interest rate cap	3		1

Deferred compensation plan investments in mutual funds	17		18
Total	$	24	$	23
Liabilities
Foreign exchange contracts - forwards	$	32	$	11



Deferred compensation plan liabilities	16		18
Total	$	48	$	29

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

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


	March 31, 2022				December 31, 2021
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Cash and cash equivalents	$	1,681	$	1,681	$	1,840	$	1,840
Accounts receivable, net	807		807		818		818
Short-term debt and current portion of long-term debt	1,450		1,459		650		653
Long-term Debt
Xerox Holdings Corporation	1,495		1,489		1,494		1,579
Xerox Corporation	894		864		1,892		1,987
Xerox - Other Subsidiaries(1)	432		433		210		210
Long-term debt	$	2,821	$	2,786	$	3,596	$	3,776

____________

(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

Lessee

3 Months Ended

Mar. 31, 2022

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 eleven years and a variety of renewal and/or termination options.

The components of lease expense are as follows:


	Three Months Ended March 31,
		2022		2021
Operating lease expense		$	25	$	27
Short-term lease expense		4		5
Variable lease expense(1)		12		12
Sublease income		(2)		(1)

Total Lease expense		$	39	$	43

_____________

(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, 2022, operating leases that had not yet commenced were not material.

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


	March 31, 2022		December 31, 2021
Other long-term assets	$	252	$	264

Accrued expenses and other current liabilities	$	79	$	79
Other long-term liabilities	191		204
Total Operating lease liabilities	$	270	$	283

Accounts Receivable, Net (Tables)

3 Months Ended

Mar. 31, 2022

Receivables [Abstract]

Schedule of Accounts Receivable, Net

Accounts receivable, net were as follows:


	March 31, 2022		December 31, 2021
Invoiced	$	658	$	660
Accrued(1)	212		216
Allowance for doubtful accounts	(63)		(58)
Accounts receivable, net	$	807	$	818

_____________

(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:


	2022		2021
Balance at January 1st	$	58	$	69
Provision	9		4
Charge-offs	(3)		(5)
Recoveries and other(1)	(1)		0
Balance at March 31st	$	63	$	68

_____________

(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,
		2022		2021
Accounts receivable sales(1)		$	116	$	107

____________

(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.

Segment Reporting - Additional Information (Details)	3 Months Ended	12 Months Ended
Segment Reporting - Additional Information (Details)	Mar. 31, 2022 segment business	Dec. 31, 2021 segment
Segment Reporting [Abstract]
Number of reportable segments	2	1
Number of businesses \| business	3
Number of operating segments	2	1

Revenue (Tables)

3 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenue

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


	Three Months Ended March 31,
		2022		2021
Primary geographical markets(1):
United States		$	940	$	974
Europe		466		499
Canada		115		93
Other		147		144
Total Revenues		$	1,668	$	1,710

Major product and services lines:
Equipment		$	314	$	381
Supplies, paper and other sales		278		221
Maintenance agreements(2)		429		435
Service arrangements(3)		486		489
Rental and other		108		129
Financing		53		55

Total Revenues		$	1,668	$	1,710

Sales channels:

Direct equipment lease(4)		$	135	$	147
Distributors & resellers(5)		261		254
Customer direct		196		201
Total Sales		$	592	$	602

_____________

(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 arrangements. Also includes revenues from embedded operating leases in our Managed Service arrangements, which were not significant.

(4)Primarily reflects sales through bundled lease arrangements.

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

Schedule of Capitalized Contract Cost

Incremental direct costs are as follows:


	Three Months Ended March 31,
		2022		2021
Incremental direct costs of obtaining a contract		$	13	$	13
Amortization of incremental direct costs		18		19

Restructuring Programs (Tables)

3 Months Ended

Mar. 31, 2022

Restructuring and Related Activities [Abstract]

Schedule of 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, 2021	$	25	$	2	$	—	$	27
Provision	22		—		1		23
Reversals	(3)		—		—		(3)
Net current period charges(1)	19		—		1		20
Charges against reserve and currency	(7)		—		(1)		(8)
Balance at March 31, 2022	$	37	$	2	$	—	$	39

______________

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

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

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

Schedule of 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,
		2022		2021
Charges against reserve and currency		$	(8)	$	(40)
Asset impairments		1		—
Effects of foreign currency and other non-cash items		—		13
Restructuring cash payments		$	(7)	$	(27)

Schedule of Restructuring and Related Costs

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


	Three Months Ended March 31,
		2022		2021
Retention related severance/bonuses(1)		$	(2)	$	(4)


Total		$	(2)	$	(4)

_____________

(1)Includes retention related severance and bonuses for employees expected to continue working beyond their minimum notification period before termination. The credit for the three months ended March 31, 2022 and 2021 reflects a change in estimate.

Segment Reporting

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Segment Reporting

Our reportable segments are aligned with how we manage the business and view the markets we serve. During the first quarter of 2022, the Company changed to its reportable segments from one reportable segment to two reportable segments - Print and Other, and Financing (FITTLE) to align with a change in how the Chief Operating Decision Maker (CODM), our Chief Executive Officer (CEO), allocates resources and assesses performance against the Company’s key growth strategies. Our two reportable segments are based on the information reviewed by the CODM together with the Company’s management to evaluate performance of the business and allocate resources. As such, prior period reportable segment results and related disclosures have been conformed to reflect the Company’s current reportable segments.

During 2021 we progressed with the standing up of three new businesses: Software (CareAR), Financing (FITTLE) and Innovation (PARC). As a result of this effort, during the first quarter of 2022, we reassessed our operating and reportable segments and determined that, based on the financial information reviewed by our CODM as well as the CEO’s management and assessment of the Company’s operations, we had two operating and reportable segments - Print and Other, and Financing.

•Print and Other - the design, development and sale of document management systems, solutions and services as well as associated technology offerings including IT and software products and services.

•Financing (FITTLE) – primarily provides financing for the sales of Xerox equipment.

We also determined that the other businesses – Software and Innovation - did not meet the requirements to be considered separate operating segments largely due to their continued management through the Print and Other Segment as well as their immateriality to our results at this stage. Accordingly, those groups will continue to be reported as part of the Print and Other Segment.

Our Print and Other segment includes the sale of document systems, supplies and technical services and managed services. The segment also includes the delivery of managed services that involve a continuum of solutions and services that help our customers optimize their print and communications infrastructure, apply automation and simplification to maximize productivity, and ensure the highest levels of security. This segment also includes IT services and software. Our product groupings range from:

•“Entry,” which includes A4 devices and desktop printers; to

•“Mid-range,” which includes A3 devices that generally serve workgroup environments in mid to large enterprises and includes products that fall into the following market categories: Color 41+ ppm priced at less than $100 thousand and Light Production 91+ ppm priced at less than $100 thousand; to

•“High-end,” which includes production printing and publishing systems that generally serve the graphic communications marketplace and large enterprises.

Customers range from small and mid-sized businesses to large enterprises. Customers also include graphic communication enterprises as well as channel partners including distributors and resellers. Segment revenues also include commissions and other payments from the Financing segment for the exclusive right to provide lease financing for Xerox products. These revenues are reported as part of Intersegment Revenues, which are eliminated in consolidated revenues.

The Financing (FITTLE) segment provides leasing solutions through either bundled or unbundled lease agreements of Xerox products or direct purchases of equipment. These leasing solutions support a wide range of customers, from government to graphic communications and SMB to Enterprise as well as financing for direct channel customer purchases of both Xerox and non-Xerox equipment. Segment revenues primarily includes financing income on sales-type leases, operating lease income (including month to month rentals and extensions) and leasing fees.

Segment Policy

We derive the results of our business segments directly from our internal management reporting system. The accounting policies that the Company uses to derive its segment results are substantially the same as those used by the Company in preparing its consolidated financial statements. The segment results include a significant level of management estimates regarding the allocation of revenues such as finance income in bundled lease arrangements and other leasing revenues and operating lease revenues embedded in our managed services contracts as well as the allocation of expenses for shared selling and administrative services. Accordingly, the financial results for the Financing segment may not be indicative of the results the business would have as on a standalone basis or what might be presented for the business in stand-alone financial statements. The CODM measures the performance of each segment based on several metrics, including segment revenues and profit. The CODM uses these results, in part, to evaluate the performance of, and to allocate resources to each segment. The Financing (FITTLE) segment also includes interest expense associated with allocated debt of the Company in support of its Finance assets, while no interest expense is allocated to the Print and Other segment.

Selected financial information for our reportable segments was as follows:


	Three Months Ended March 31,
	2022									2021
	Print and Other			Financing (FITTLE)			Total			Print and Other			Financing (FITTLE)			Total
External net revenue	$	1,513		$	155		$	1,668		$	1,533		$	177		$	1,710
Intersegment net revenue(1)	37			3			40			48			3			51
Total Segment net revenue	$	1,550		$	158		$	1,708		$	1,581		$	180		$	1,761

Segment (loss) profit	$	(20)		$	17		$	(3)		$	71		$	18		$	89
Segment margin(2)	(1.3)		%	11.0		%	(0.2)		%	4.6		%	10.2		%	5.2		%

Depreciation and amortization	$	29		$	32		$	61		$	29		$	42		$	71


Interest income	—			53			53			—			55			55
Interest expense(3)	—			26			26			—			30			30

_____________

(1)Intersegment net revenue is primarily commissions and other payments made by the Financing Segment to the Print and Other Segment for the lease of Xerox Equipment placements.

(2)Segment margin based on External net revenue only.

(3)Interest expense for the Financing Segment includes $2 and $2 of non-financing interest expense on allocated debt associated with Equipment on operating lease for the three months ended March 31, 2022 and 2021, respectively.

Selected financial information for our reportable segments was as follows:


	Three Months Ended March 31,
		2022		2021





Pre-tax (Loss) Income
Total reported segments		$	(3)	$	89
Restructuring and related costs, net		(18)		(17)
Amortization of intangible assets		(11)		(15)
Other expenses, net		(57)		(4)
Total Pre-tax (loss) income		$	(89)	$	53

Depreciation and Amortization
Total reported segments		$	61	$	71
Amortization of intangible assets		11		15
Total Depreciation and amortization		$	72	$	86

Interest Expense
Total reported segments		$	26	$	30
Corporate		27		22
Total Interest expense		$	53	$	52

Interest Income
Total reported segments		$	53	$	55
Corporate		1		1
Total Interest income		$	54	$	56

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

+ Details

Supplementary Financial Information

3 Months Ended

Mar. 31, 2022

Supplemental Financial Information [Abstract]

Supplementary Financial Information

Government Assistance

In response to the COVID-19 pandemic, various governments employed temporary measures to provide aid and economic stimulus to companies through cash grants and credits or indirectly through payments to temporarily furloughed employees. Estimated savings from these various government assistance programs are recorded as follows in the Condensed Consolidated Statements of (Loss) Income:


	Three Months Ended March 31,
		2022		2021

Cost of services, maintenance and rentals		$	—	$	7

Selling, administrative and general expenses		—		3
Total Estimated savings		$	—	$	10

Cash, Cash Equivalents and Restricted Cash

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

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


	March 31, 2022		December 31, 2021
Cash and cash equivalents	$	1,681	$	1,840
Restricted cash
Litigation deposits in Brazil	42		34
Escrow and cash collections related to secured borrowing arrangements(1)	37		32
Other restricted cash	1		3
Total Restricted cash	80		69
Cash, cash equivalents and restricted cash	$	1,761	$	1,909

_____________

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

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


	March 31, 2022		December 31, 2021
Other current assets	$	38	$	33
Other long-term assets	42		36
Total Restricted cash	$	80	$	69

Supplemental Cash Flow Information

Summarized cash flow information is as follows:


	Three Months Ended March 31,
		2022		2021
Provision for receivables		$	14	$	11
Provision for inventory		5		9
Provision for product warranties		1		2
Depreciation of buildings and equipment		18		19
Depreciation and obsolescence of equipment on operating leases		32		42
Amortization of internal use software		11		10

Amortization of acquired intangible assets		11		15
Amortization of customer contract costs(1)		19		20
Cost of additions to land, buildings and equipment		12		8
Cost of additions to internal use software		4		9
Common stock dividends - Xerox Holdings		42		50
Preferred stock dividends - Xerox Holdings		4		4


Payments to noncontrolling interests		1		—
Repurchases related to stock-based compensation - Xerox Holdings		10		4

_____________

(1)Amortization of customer contract costs is reported in (Increase) decrease 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.

Debt - Narrative (Details)	1 Months Ended	3 Months Ended		12 Months Ended
Debt - Narrative (Details)	Feb. 28, 2021 USD ($)	Mar. 31, 2022 USD ($)	Mar. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Jun. 30, 2022 USD ($)	Mar. 30, 2022 USD ($)	Jan. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Sep. 30, 2021 USD ($)
Secured Borrowings and Collateral [Abstract]
Interest payable		$ 10,000,000						$ 30,000,000
Interest expense		$ 53,000,000	$ 52,000,000
Secured debt									$ 311,000,000
Repayments of debt				$ 248,000,000
Term of debt (years)		2 years 6 months
Effective interest rate		1.75%
Special Purpose Entity (SPE)
Secured Borrowings and Collateral [Abstract]
Financing receivables sold							$ 789,000,000		331,000,000
Secured debt							$ 668,000,000
Effective interest rate		1.71%
Net book value of rights to payments under operating leases sold									$ 9,000,000
Credit Agreement Amendment
Secured Borrowings and Collateral [Abstract]
Line of credit facility, current borrowing capacity		$ 1,500,000,000				$ 1,800,000,000
Line of credit facility covenant terms minimum unrestricted cash		$ 500,000,000
Borrowed money to consolidated EBITDA		4.25
Cap on cash netting		$ 1,250,000,000
Credit Agreement Amendment \| Forecast
Secured Borrowings and Collateral [Abstract]
Cap on cash netting					$ 1,000,000,000
Senior Notes \| 2025 And 2028 Senior Notes
Secured Borrowings and Collateral [Abstract]
Proceeds, net of fees and expenses	$ 1,494,000,000
Related party debt		1,495,000,000						$ 1,494,000,000
Senior Notes \| 2020 Senior Notes
Secured Borrowings and Collateral [Abstract]
Interest expense		$ 20,000,000	$ 20,000,000

Restructuring Programs - Restructuring and Related Costs (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Restructuring Cost and Reserve [Line Items]
Related restructuring costs	$ (2)	$ (4)
Retention related severance/bonuses
Restructuring Cost and Reserve [Line Items]
Related restructuring costs	$ (2)	$ (4)

Acquisitions and Investments	3 Months Ended
Acquisitions and Investments	Mar. 31, 2022
Business Combination and Asset Acquisition [Abstract]
Acquisitions and Investments	Acquisitions and Investments Acquisition In the first quarter 2022, Xerox acquired Powerland, a leading IT services provider in Canada, for approximately $54 (CAD 69 million). The acquisition also includes contingent consideration up to approximately $22 (CAD 28 million) based on future performance of the acquisition over the next two years. The acquisition strengthens Xerox’s IT services offerings in North America, which include cloud, cyber security, end user computing and managed services. The goodwill associated with the acquisition of Powerland is included in our Print and Other segment. The operating results of this acquisition are not material to our financial statements and are included within our results from the acquisition date. The purchase price was all cash for 100% ownership of the acquired company and was primarily allocated to Intangible assets, net (approximately $40) and Goodwill (approximately $41), with the remainder to tangible assets and assumed/recorded liabilities. The allocations are based on preliminary management estimates, which continue to be reviewed, and are expected to be finalized by the end of 2022 and may include input and support from third-party valuations. Any adjustments to the preliminary allocations are not expected to be material.

Finance Receivables, Net - Credit Quality Indicators (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Financing Receivable, Credit Quality Indicator [Line Items]
2022	$ 414	$ 1,236
2021	1,092	837
2020	741	642
2019	543	346
2018	263	110
Prior	72	17
Total	3,125	3,188
United States (Direct)
Financing Receivable, Credit Quality Indicator [Line Items]
2022	79	299
2021	261	234
2020	215	186
2019	164	107
2018	86	35
Prior	27	6
Total	832	867
United States (Indirect)
Financing Receivable, Credit Quality Indicator [Line Items]
2022	129	460
2021	429	263
2020	237	182
2019	158	82
2018	64	22
Prior	14	0
Total	1,031	1,009
Canada
Financing Receivable, Credit Quality Indicator [Line Items]
2022	14	74
2021	71	73
2020	70	56
2019	51	33
2018	29	13
Prior	11	2
Total	246	251
EMEA
Financing Receivable, Credit Quality Indicator [Line Items]
2022	192	403
2021	331	267
2020	219	218
2019	170	124
2018	84	40
Prior	20	9
Total	1,016	1,061
Low Credit Risk
Financing Receivable, Credit Quality Indicator [Line Items]
2022	221	644
2021	553	436
2020	380	341
2019	278	195
2018	144	57
Prior	36	10
Total	1,612	1,683
Low Credit Risk \| United States (Direct)
Financing Receivable, Credit Quality Indicator [Line Items]
2022	43	148
2021	128	121
2020	110	98
2019	85	68
2018	54	21
Prior	15	3
Total	435	459
Low Credit Risk \| United States (Indirect)
Financing Receivable, Credit Quality Indicator [Line Items]
2022	66	235
2021	205	145
2020	124	100
2019	83	43
2018	30	11
Prior	7	0
Total	515	534
Low Credit Risk \| Canada
Financing Receivable, Credit Quality Indicator [Line Items]
2022	5	32
2021	30	27
2020	26	22
2019	20	13
2018	11	3
Prior	3	1
Total	95	98
Low Credit Risk \| EMEA
Financing Receivable, Credit Quality Indicator [Line Items]
2022	107	229
2021	190	143
2020	120	121
2019	90	71
2018	49	22
Prior	11	6
Total	567	592
Average Credit Risk
Financing Receivable, Credit Quality Indicator [Line Items]
2022	163	451
2021	406	286
2020	256	242
2019	215	118
2018	94	39
Prior	26	6
Total	1,160	1,142
Average Credit Risk \| United States (Direct)
Financing Receivable, Credit Quality Indicator [Line Items]
2022	24	60
2021	47	40
2020	39	57
2019	52	23
2018	20	8
Prior	7	2
Total	189	190
Average Credit Risk \| United States (Indirect)
Financing Receivable, Credit Quality Indicator [Line Items]
2022	55	201
2021	200	103
2020	99	74
2019	69	35
2018	31	10
Prior	6	0
Total	460	423
Average Credit Risk \| Canada
Financing Receivable, Credit Quality Indicator [Line Items]
2022	8	34
2021	33	34
2020	32	27
2019	25	15
2018	13	6
Prior	5	1
Total	116	117
Average Credit Risk \| EMEA
Financing Receivable, Credit Quality Indicator [Line Items]
2022	76	156
2021	126	109
2020	86	84
2019	69	45
2018	30	15
Prior	8	3
Total	395	412
High Credit Risk
Financing Receivable, Credit Quality Indicator [Line Items]
2022	30	141
2021	133	115
2020	105	59
2019	50	33
2018	25	14
Prior	10	1
Total	353	363
High Credit Risk \| United States (Direct)
Financing Receivable, Credit Quality Indicator [Line Items]
2022	12	91
2021	86	73
2020	66	31
2019	27	16
2018	12	6
Prior	5	1
Total	208	218
High Credit Risk \| United States (Indirect)
Financing Receivable, Credit Quality Indicator [Line Items]
2022	8	24
2021	24	15
2020	14	8
2019	6	4
2018	3	1
Prior	1	0
Total	56	52
High Credit Risk \| Canada
Financing Receivable, Credit Quality Indicator [Line Items]
2022	1	8
2021	8	12
2020	12	7
2019	6	5
2018	5	4
Prior	3	0
Total	35	36
High Credit Risk \| EMEA
Financing Receivable, Credit Quality Indicator [Line Items]
2022	9	18
2021	15	15
2020	13	13
2019	11	8
2018	5	3
Prior	1	0
Total	$ 54	$ 57

Lessee - Additional Information (Details)	Mar. 31, 2022
Leases [Abstract]
Remaining terms of leases (years)	11 years

Recent Accounting Pronouncements (Policies)	3 Months Ended
Recent Accounting Pronouncements (Policies)	Mar. 31, 2022
Accounting Standards Update and Change in Accounting Principle [Abstract]
Accounting Standard Updates to be Adopted	Accounting Standard Updates to be Adopted: Financial Instruments In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures - Gross Write-offs. The amendments in this update eliminate the accounting guidance for Troubled Debt Restructurings (TDRs) by creditors while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors made to borrowers experiencing financial difficulty. The amendments also require disclosure of current-period gross write-offs by year of origination for financing receivables. The update is applicable for financing receivables and net investments in leases that are within the scope of ASC 326-20, Financial Instruments - Credit Losses - Measured at Amortized Cost. This update is effective for our fiscal year beginning on January 1, 2023, but early adoption is permitted. The provisions of this amendment are to be applied on a prospective basis. 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 2022: Government Assistance In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832), Disclosures by Business Entities about Government Assistance. The update increases the transparency surrounding government assistance by requiring disclosure of 1) the types of assistance received, 2) an entity’s accounting for the assistance, and 3) the effect of the assistance on the entity’s financial statements. We adopted this update effective for our fiscal year beginning January 1, 2022. The impact of adoption was not material to our Consolidated Financial Statements. Impacts on future periods will depend on the amounts of government assistance received. Prior to the COVID pandemic, the amounts of government assistance the Company received were not material and since the update is limited to increased disclosures, we do not expect the adoption to have a material impact on our financial condition, results of operations, and cash flows in future periods. Business Combinations In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The new guidance requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC Topic 606, Revenue from Contracts with Customers, as if the acquirer had originated the contracts. This approach differs from the current requirement to measure contract assets and contract liabilities acquired in a business combination at fair value. We early adopted this update effective for our fiscal year beginning January 1, 2022. The impact of adopting the new standard will depend on the magnitude of future acquisitions. The standard will not impact contract assets or liabilities acquired in business combinations that occurred prior to the adoption date. 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 simplified the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments and convertible preferred stock. This update also amended the guidance for the derivatives scope exception for contracts in an entity's own equity to reduce form-over-substance-based accounting conclusions and required the application of the if-converted method for calculating diluted earnings per share. We adopted this update effective for our fiscal year beginning January 1, 2022. The adoption of this update did not have a material impact on the Company’s consolidated financial statements and related disclosures. Other Updates In 2022 and 2021, 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: •Derivatives and Hedging: ASU 2022-01, Derivatives and Hedging (Topic 815), Fair Value Hedging - Portfolio Layer Method. This update is effective for our fiscal year beginning January 1, 2023. •Equity Instruments: ASU 2021-04, Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options). This update is effective for our fiscal year beginning January 1, 2022. •Leases: ASU 2021-05, Leases - Certain Lease Payments with Variable Lease Payments (ASC 842). This update is effective for our fiscal year beginning January 1, 2022.
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 eleven years and a variety of renewal and/or termination options.

Fair Value of Financial Assets and Liabilities

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value of Financial Assets and Liabilities


	March 31, 2022		December 31, 2021
Assets
Foreign exchange contracts - forwards	$	4	$	4

Interest rate cap	3		1

Deferred compensation plan investments in mutual funds	17		18
Total	$	24	$	23
Liabilities
Foreign exchange contracts - forwards	$	32	$	11



Deferred compensation plan liabilities	16		18
Total	$	48	$	29

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, 2022				December 31, 2021
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Cash and cash equivalents	$	1,681	$	1,681	$	1,840	$	1,840
Accounts receivable, net	807		807		818		818
Short-term debt and current portion of long-term debt	1,450		1,459		650		653
Long-term Debt
Xerox Holdings Corporation	1,495		1,489		1,494		1,579
Xerox Corporation	894		864		1,892		1,987
Xerox - Other Subsidiaries(1)	432		433		210		210
Long-term debt	$	2,821	$	2,786	$	3,596	$	3,776

____________

(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

Segment Reporting - Selected Financial Information For Reportable Segments (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Segment Reporting, Asset Reconciling Item [Line Items]
Total Revenues	$ 1,668	$ 1,710
Depreciation and amortization	72	86
Interest income	54	56
Total Interest expense	53	52
Intersegment Eliminations
Segment Reporting, Asset Reconciling Item [Line Items]
Total Revenues	40	51
Operating Segments
Segment Reporting, Asset Reconciling Item [Line Items]
Total Revenues	1,708	1,761
Segment (loss) profit	$ (3)	$ 89
Segment margin	(0.20%)	5.20%
Depreciation and amortization	$ 61	$ 71
Interest income	53	55
Total Interest expense	26	30
Non financing interest expenses	2	2
Print and Other
Segment Reporting, Asset Reconciling Item [Line Items]
Total Revenues	1,513	1,533
Print and Other \| Intersegment Eliminations
Segment Reporting, Asset Reconciling Item [Line Items]
Total Revenues	37	48
Print and Other \| Operating Segments
Segment Reporting, Asset Reconciling Item [Line Items]
Total Revenues	1,550	1,581
Segment (loss) profit	$ (20)	$ 71
Segment margin	(1.30%)	4.60%
Depreciation and amortization	$ 29	$ 29
Interest income	0	0
Total Interest expense	0	0
Financing (FITTLE)
Segment Reporting, Asset Reconciling Item [Line Items]
Total Revenues	155	177
Financing (FITTLE) \| Intersegment Eliminations
Segment Reporting, Asset Reconciling Item [Line Items]
Total Revenues	3	3
Financing (FITTLE) \| Operating Segments
Segment Reporting, Asset Reconciling Item [Line Items]
Total Revenues	158	180
Segment (loss) profit	$ 17	$ 18
Segment margin	11.00%	10.20%
Depreciation and amortization	$ 32	$ 42
Interest income	53	55
Total Interest expense	$ 26	$ 30

Accounts Receivable, Net - Summary (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for doubtful accounts	$ (63)		$ (58)
Accounts receivable, net	807		818
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	58
Ending balance	$ 63		$ 58
Credit Concentration Risk \| Accounts Receivable \| Customers
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Concentration risk (percentage)	7.20%		6.60%
Accounts Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Invoiced	$ 658		$ 660
Accrued	212		216
Allowance for doubtful accounts	(63)	$ (68)	(58)
Accounts receivable, net	807		818
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	58	69	69
Provision	9	4
Charge-offs	(3)	(5)
Recoveries and other	(1)	0
Ending balance	$ 63	$ 68	$ 58

Contingencies and Litigation

3 Months Ended

Mar. 31, 2022

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, 2022		December 31, 2021
Tax contingency - unreserved	$	368	$	292
Escrow cash deposits	39		32
Surety bonds	69		96
Letters of credit	93		74
Liens on Brazilian assets	—		—

The increase in the unreserved portion of the tax contingency, inclusive of any related interest, was primarily due to currency, as well as 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, 2022 and December 31, 2021. 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

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 then-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.

Discovery commenced. On August 10, 2020, the Xerox defendants and the Icahn defendants filed separate motions to dismiss. Briefing on the motions was completed on October 21, 2020. On December 14, 2020, following oral argument, the Court issued a decision and order granting defendants’ motions and dismissing the action in its entirety as to all defendants. Dismissal as to the Icahn defendants was conditioned on the filing of an affidavit, which the Icahn defendants filed on December 16, 2020, indicating whether defendant Icahn gained a profit or incurred a loss on purchases of HP stock during the relevant time period.

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

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

On November 18, 2021, the Appellate Division issued its decision. The Court reversed the lower court’s ruling to the extent that it dismissed the claims asserted against the Icahn defendants. The claims asserted against the Directors remain dismissed. On December 8, 2021, the Xerox Board approved the formation of a Special Litigation Committee to investigate and evaluate the claims and allegations asserted in the Miami Firefighters’ case and determine the course of action that would be in the best interests of the Company and its shareholders. The Special Litigation Committee moved to stay the litigation pending its investigation and on January 25, 2022, the Court issued an order staying all discovery until February 28, 2022, except as related to the issue of the alleged damages sustained by Xerox.

On March 18, 2022, following the conclusion of its investigation, the Special Litigation Committee filed a motion to dismiss plaintiffs’ claims on the grounds that the derivative claims are without merit and pursuing the claims would not be in the best interest of Xerox or its shareholders. One week later the Icahn Defendants filed a motion for summary judgment. On April 4, 2022, Miami Firefighters filed papers in opposition to the pending motions and cross-moved to, among other things, seek discovery regarding the Special Litigation Committee’s investigation. Miami Firefighters also cross-moved seeking an order granting partial summary judgment against the Icahn Defendants for disgorgement of alleged unrealized profits in the amount of $18.12. Oral argument on the pending motions is scheduled for May 26, 2022.

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

On March 10, 2021, Xerox Holdings Corporation (“Xerox Holdings”) 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 Xerox Holdings 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 Xerox Holdings and its direct and indirect customers; that Xerox Holdings’ worldwide actual and projected losses through the end of 2020 totaled in excess of $300 (and is still increasing); and that following Xerox Holdings' 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 Xerox Holdings filed similar complaints and related requests for arbitration in Toronto, London, and Amsterdam for Canadian, UK and European losses.

Xerox Holdings consented to defendant’s request for an extension of its time in which to answer or otherwise respond to the complaint. On May 6, 2021, FMG filed its answer to the complaint. The parties thereafter agreed to stay all non-U.S. proceedings pending the outcome of the U.S. litigation.

Guarantees

We have issued or provided approximately $279 of guarantees as of March 31, 2022 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.

Fair Value of Financial Assets and Liabilities - Estimated Fair Values of Financial Assets and Liabilities Not Measured at Fair Value on a Recurring Basis (Details) - Nonrecurring - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	$ 1,681	$ 1,840
Accounts receivable, net	807	818
Short-term debt and current portion of long-term debt	1,450	650
Long-term debt	2,821	3,596
Carrying Amount \| Xerox Holdings Corporation
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	1,495	1,494
Carrying Amount \| XEROX CORPORATION
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	894	1,892
Carrying Amount \| Xerox - Other Subsidiaries
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	432	210
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	1,681	1,840
Accounts receivable, net	807	818
Short-term debt and current portion of long-term debt	1,459	653
Long-term debt	2,786	3,776
Fair Value \| Xerox Holdings Corporation
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	1,489	1,579
Fair Value \| XEROX CORPORATION
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	864	1,987
Fair Value \| Xerox - Other Subsidiaries
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	$ 433	$ 210

Contingencies and Litigation - Other Pending Litigation - Narrative (Details) - USD ($) $ in Thousands	Mar. 18, 2022	Mar. 10, 2021	Dec. 13, 2019	Mar. 31, 2022
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				$ 279,000
Miami Firefighters Relief Pension Fund V. Icahn Et Al
Guarantor Obligations [Line Items]
Marketable securities, gain (loss)			$ 128,000
Litigation settlement	$ 18,120

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (UNAUDITED) - USD ($)
$ in Millions

3 Months Ended

Mar. 31, 2022

Mar. 31, 2021

Statement of Comprehensive Income [Abstract]

Net (Loss) Income

$ (57)

$ 39

Less: Net loss attributable to noncontrolling interests

(1)

Net (Loss) Income Attributable to Xerox Holdings

(56)

Other Comprehensive (Loss) Income , Net

Translation adjustments, net

^[1]

(72)

(51)

Unrealized losses, net

^[1]

(11)

(7)

Changes in defined benefit plans, net

^[1]

Other Comprehensive Loss, Net Attributable to Xerox Holdings

^[1]

(44)

(3)

Comprehensive (Loss) Income, Net

Comprehensive (Loss) Income, Net

(101)

Less: Comprehensive loss, net attributable to noncontrolling interests

(1)

Comprehensive (Loss) Income, Net Attributable to Xerox Holdings

$ (100)

$ 36

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

Supplementary Financial Information - Restricted Cash Balance Sheet Location (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Restricted Cash and Cash Equivalents Items [Line Items]
Total Restricted cash	$ 80	$ 69
Other current assets
Restricted Cash and Cash Equivalents Items [Line Items]
Total Restricted cash	38	33
Other long-term assets
Restricted Cash and Cash Equivalents Items [Line Items]
Total Restricted cash	$ 42	$ 36

Shareholders' Equity of Xerox Holdings (Tables)

3 Months Ended

Mar. 31, 2022

Stockholders' Equity Note [Abstract]

Shareholder's Equity of Xerox

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, 2021	$	168	$	1,802	$	(177)	$	5,631	$	(2,988)	$	4,436	$	7	$	4,443

Comprehensive loss, net	—		—		—		(56)		(44)		(100)		(1)		(101)
Cash dividends declared - common(3)	—		—		—		(39)		—		(39)		—		(39)
Cash dividends declared - preferred(4)	—		—		—		(4)		—		(4)		—		(4)


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

Payments to acquire treasury stock, including fees	—		—		(113)		—		—		(113)		—		(113)
Cancellation of treasury stock	(12)		(246)		258		—		—		—		—		—

Distributions to noncontrolling interests	—		—		—		—		—		—		(1)		(1)

Balance at March 31, 2022	$	156	$	1,560	$	(32)	$	5,532	$	(3,032)	$	4,184	$	5	$	4,189


	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

_____________

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

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

(3)Cash dividends declared on common stock for the three months ended March 31, 2022 and 2021 were $0.25 per share, respectively.

(4)Cash dividends declared on preferred stock for the three months ended March 31, 2022 and 2021 were $20.00 per share, respectively.

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, 2021	$	3,202	$	4,476	$	(2,988)	$	4,690	$	7	$	4,697

Comprehensive loss, net	—		(56)		(44)		(100)		(1)		(101)



Dividends declared to parent	—		(549)		—		(549)		—		(549)


Transfers from parent	390		—		—		390		—		390

Distributions to noncontrolling interests	—		—		—		—		(1)		(1)






Balance at March 31, 2022	$	3,592	$	3,871	$	(3,032)	$	4,431	$	5	$	4,436


	Additional Paid-in Capital		Retained Earnings		AOCL(1)		Xerox Shareholder's Equity		Non- controlling Interests		Total Equity
Balance at December 31, 2020	$	4,888	$	5,834	$	(3,332)	$	7,390	$	4	$	7,394

Comprehensive income (loss), net	—		39		(3)		36		—		36



Dividends declared to parent	—		(201)		—		(201)		—		(201)

Intercompany loan capitalization	(1,494)		—		—		(1,494)		—		(1,494)
Transfers to parent	(34)		—		—		(34)		—		(34)


Balance at March 31, 2021	$	3,360	$	5,672	$	(3,335)	$	5,697	$	4	$	5,701

_____________

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

Summary of Treasury Stock Purchases

The following is a summary of the changes in Common and Treasury stock shares:


	Common Stock Shares	Treasury Stock Shares
Balance at December 31, 2021	168,069	8,675
Stock based compensation plans, net	630	—
Acquisition of Treasury stock	—	5,174
Cancellation of Treasury stock	(12,341)	(12,341)
Balance at March 31, 2022	156,358	1,508

Debt - Interest Income and Interest Expense Disclosure (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Debt Instrument [Line Items]
Interest expense	$ 53	$ 52
Interest income	54	56
2020 Senior Notes \| Senior Notes
Debt Instrument [Line Items]
Interest expense	$ 20	$ 20

Restructuring Programs - Restructuring Program Activity (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Restructuring Reserve [Roll Forward]
Balance at beginning of period	$ 27
Provision	23
Reversals	(3)
Net current period charges	20
Charges against reserve and currency	(8)	$ (40)
Balance at end of period	39
Leased right-of-use asset write-off	1
Severance and Related Costs
Restructuring Reserve [Roll Forward]
Balance at beginning of period	25
Provision	22
Reversals	(3)
Net current period charges	19
Charges against reserve and currency	(7)
Balance at end of period	37
Other Contractual Termination Costs
Restructuring Reserve [Roll Forward]
Balance at beginning of period	2
Provision	0
Reversals	0
Net current period charges	0
Charges against reserve and currency	0
Balance at end of period	2
Asset Impairments
Restructuring Reserve [Roll Forward]
Balance at beginning of period	0
Provision	1
Reversals	0
Net current period charges	1
Charges against reserve and currency	(1)
Balance at end of period	$ 0

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
$ in Millions

3 Months Ended

Mar. 31, 2022

Mar. 31, 2021

Cash Flows from Operating Activities

Net (Loss) Income

$ (57)

$ 39

Adjustments required to reconcile Net (loss) income to Cash flows from operating activities

Depreciation and amortization

Provisions

Stock-based compensation

Restructuring and asset impairment charges

Payments for restructurings

(7)

(27)

Non-service retirement-related costs

^[1]

(7)

(20)

Contributions to retirement plans

^[1]

(38)

(41)

Decrease in accounts receivable and billed portion of finance receivables

Increase in inventories

(31)

(18)

Increase in equipment on operating leases

(36)

(28)

Decrease in finance receivables

(Increase) decrease in other current and long-term assets

(1)

Increase (decrease) in accounts payable

111

(31)

Increase (decrease) in accrued compensation

^[1]

(10)

Decrease in other current and long-term liabilities

(43)

(35)

Net change in income tax assets and liabilities

(39)

Net change in derivative assets and liabilities

Other operating, net

(11)

Net cash provided by operating activities

117

Cash Flows from Investing Activities

Cost of additions to land, buildings, equipment and software

(16)

(17)

Acquisitions, net of cash acquired

(54)

Other investing, net

(5)

Net cash used in investing activities

(70)

(17)

Cash Flows from Financing Activities

Proceeds from issuance of long-term debt

668

Payments on long-term debt

(646)

(95)

Dividends

(46)

(54)

Payments to acquire treasury stock, including fees

(113)

(162)

Other financing, net

(2)

(3)

Net cash used in financing activities

(154)

(318)

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

(12)

Decrease in cash, cash equivalents and restricted cash

(148)

(230)

Cash, cash equivalents and restricted cash at beginning of period

1,909

2,691

Cash, Cash Equivalents and Restricted Cash at End of Period

$ 1,761

$ 2,461

[1]

Captions were changed in 2022 to reflect the inclusion of expense and contributions for our Retiree Health plans, which were previously reported as part of the Increase (decrease) in accrued compensation. There was no change to Net cash provided by operating activities as a result of the reclassification. Prior year amounts have been revised to conform to this presentation. Refer to Note 16 - Employee Benefit Plans for additional information.

Financial Instruments

3 Months Ended

Mar. 31, 2022

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, 2022, there was one interest rate cap contract 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, 2022 and December 31, 2021, we had outstanding forward exchange and purchased option contracts with gross notional values of $1,126 and $1,113 respectively, with terms of less than 12 months. Approximately 77% of the contracts at March 31, 2022 mature within three months, 13% mature in three to six months and 10% in six to twelve months. There have not been any material changes 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 fair value of these contracts were $18 and $3 as of March 31, 2022 and December 31, 2021, 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, 2022		December 31, 2021
Derivatives Designated as Hedging Instruments
Foreign exchange contracts - forwards	Other current assets	$	1	$	3
	Accrued expenses and other current liabilities	(19)		(6)


Interest rate cap	Other long-term assets	3		1

	Net designated derivative liabilities	$	(15)	$	(2)

Derivatives NOT Designated as Hedging Instruments
Foreign exchange contracts – forwards	Other current assets	$	3	$	1
	Accrued expenses and other current liabilities	(13)		(5)
	Net undesignated derivative liabilities	$	(10)	$	(4)

Summary of Derivatives	Total Derivative assets	$	7	$	5
	Total Derivative liabilities	(32)		(11)
	Net Derivative liabilities	$	(25)	$	(6)

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,
Loss on Derivative Instruments		2022		2021




Cash Flow Hedges - Foreign Exchange Forward Contracts and Options
Derivative loss recognized in OCI (effective portion)		$	(15)	$	(10)
Derivative loss reclassified from AOCL to income - Cost of sales (effective portion)		(2)		(1)

During the three months ended March 31, 2022 and 2021, no amount of ineffectiveness was recorded in the Condensed Consolidated Statements of (Loss) Income for these designated cash flow hedges and all components of each derivative’s gain or (loss) were included in the assessment of hedge effectiveness. In addition, no amount was recorded for an underlying exposure that did not occur or was not expected to occur.

As of March 31, 2022, a net after-tax loss of $13 was recorded in Accumulated other comprehensive loss associated with our cash flow hedging activity. The entire balance is expected to be reclassified into net income within the next 12 months, providing an offsetting economic impact against the underlying anticipated transactions.

Non-Designated Derivative Instruments Gains (Losses)

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

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


Derivatives NOT Designated as Hedging Instruments	Location of Derivative Gain (Loss)	Three Months Ended March 31,
			2022		2021
Foreign exchange contracts – forwards	Other expense – Currency losses, net		$	(9)	$	(18)

Currency losses, net were $0 and $2 for three months ended March 31, 2022 and 2021, 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.

Employee Benefit Plans

3 Months Ended

Mar. 31, 2022

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:	2022		2021		2022		2021		2022		2021
Service cost	$	—	$	—	$	4	$	5	$	—	$	1
Interest cost	20		18		29		22		2		2
Expected return on plan assets	(27)		(28)		(55)		(52)		—		—
Recognized net actuarial loss	4		5		6		15		—		—
Amortization of prior service credit	—		—		—		—		(4)		(17)
Recognized settlement loss	18		15		—		—		—		—

Defined benefit plans	15		10		(16)		(10)		(2)		(14)
Defined contribution plans	5		—		4		5		n/a		n/a
Net Periodic Benefit Cost (Credit)	20		10		(12)		(5)		(2)		(14)

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income:
Net actuarial loss (gain)(1)	14		(44)		—		1		(7)		—
Prior service credit	—		—		—		—		(23)		—
Amortization of net actuarial loss	(22)		(20)		(6)		(15)		—		—
Amortization of prior service credit	—		—		—		—		4		17

Total Recognized in Other Comprehensive (Loss) Income(2)	(8)		(64)		(6)		(14)		(26)		17
Total Recognized in Net Periodic Benefit Cost (Credit) and Other Comprehensive (Loss) Income	$	12	$	(54)	$	(18)	$	(19)	$	(28)	$	3

_____________

(1)The net actuarial loss (gain) for U.S. Plans primarily reflects the remeasurement of our primary U.S. pension plans as a result of the payment of periodic settlements. The Retiree Health net actuarial gain reflects remeasurement related to the first quarter 2022 Plan Amendment.

(2)Amounts represent the pre-tax effect included within Other Comprehensive (Loss) Income. Refer to Note 19 - Other Comprehensive (Loss) Income 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,
	2022		2021		Estimated 2022		2021
U.S. plans	$	6	$	6	$	25	$	24
Non-U.S. plans	26		29		110		111
Total Pension plans	32		35		135		135
Retiree Health	6		6		25		25
Total Retirement plans	$	38	$	41	$	160	$	160

There are no mandatory contributions required in 2022 for our U.S. tax-qualified defined benefit plans to meet the minimum funding requirements.

Retiree Health Plan Amendment

During the first quarter of 2022, we amended our U.S. Retiree Health Plan to reduce certain benefits for existing union retirees through the reduction or elimination of coverage or cost-sharing subsidies for retiree health care and life insurance costs. This negative plan amendment resulted in a reduction of approximately $23 in the Company's postretirement benefit obligation. The amount for the plan amendment will be amortized to future net periodic benefit costs as a prior service credit.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 55
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=123450688&loc=d3e4179-114921

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

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (d)(i)
-URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (o)
-URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (p)
-URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

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

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

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

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (d)(iv)(03)
-URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (q)
-URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (r)(1)
-URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (d)(iii)
-URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (l)
-URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (r)(2)
-URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

+ Details

Recent Accounting Pronouncements	3 Months Ended
Recent Accounting Pronouncements	Mar. 31, 2022
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: Financial Instruments In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures - Gross Write-offs. The amendments in this update eliminate the accounting guidance for Troubled Debt Restructurings (TDRs) by creditors while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors made to borrowers experiencing financial difficulty. The amendments also require disclosure of current-period gross write-offs by year of origination for financing receivables. The update is applicable for financing receivables and net investments in leases that are within the scope of ASC 326-20, Financial Instruments - Credit Losses - Measured at Amortized Cost. This update is effective for our fiscal year beginning on January 1, 2023, but early adoption is permitted. The provisions of this amendment are to be applied on a prospective basis. 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 2022: Government Assistance In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832), Disclosures by Business Entities about Government Assistance. The update increases the transparency surrounding government assistance by requiring disclosure of 1) the types of assistance received, 2) an entity’s accounting for the assistance, and 3) the effect of the assistance on the entity’s financial statements. We adopted this update effective for our fiscal year beginning January 1, 2022. The impact of adoption was not material to our Consolidated Financial Statements. Impacts on future periods will depend on the amounts of government assistance received. Prior to the COVID pandemic, the amounts of government assistance the Company received were not material and since the update is limited to increased disclosures, we do not expect the adoption to have a material impact on our financial condition, results of operations, and cash flows in future periods. Business Combinations In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The new guidance requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC Topic 606, Revenue from Contracts with Customers, as if the acquirer had originated the contracts. This approach differs from the current requirement to measure contract assets and contract liabilities acquired in a business combination at fair value. We early adopted this update effective for our fiscal year beginning January 1, 2022. The impact of adopting the new standard will depend on the magnitude of future acquisitions. The standard will not impact contract assets or liabilities acquired in business combinations that occurred prior to the adoption date. 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 simplified the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments and convertible preferred stock. This update also amended the guidance for the derivatives scope exception for contracts in an entity's own equity to reduce form-over-substance-based accounting conclusions and required the application of the if-converted method for calculating diluted earnings per share. We adopted this update effective for our fiscal year beginning January 1, 2022. The adoption of this update did not have a material impact on the Company’s consolidated financial statements and related disclosures. Other Updates In 2022 and 2021, 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: •Derivatives and Hedging: ASU 2022-01, Derivatives and Hedging (Topic 815), Fair Value Hedging - Portfolio Layer Method. This update is effective for our fiscal year beginning January 1, 2023. •Equity Instruments: ASU 2021-04, Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options). This update is effective for our fiscal year beginning January 1, 2022. •Leases: ASU 2021-05, Leases - Certain Lease Payments with Variable Lease Payments (ASC 842). This update is effective for our fiscal year beginning January 1, 2022.

- 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.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 65
-Paragraph 1
-Subparagraph (g)(2)
-URI http://asc.fasb.org/extlink&oid=123338486&loc=SL49131195-203048

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

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 105
-SubTopic 10
-Section 65
-Paragraph 6
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=124434974&loc=SL124442142-165695

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 65
-Paragraph 1
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=123338486&loc=SL49131195-203048

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 65
-Paragraph 8
-Subparagraph (e)(2)
-URI http://asc.fasb.org/extlink&oid=123459177&loc=SL121830611-158277

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section S99
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=122038215&loc=SL108384541-122693

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 20
-Section 65
-Paragraph 2
-Subparagraph (d)(1)
-URI http://asc.fasb.org/extlink&oid=124402435&loc=SL124402458-218513

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 65
-Paragraph 6
-Subparagraph (e)(2)
-URI http://asc.fasb.org/extlink&oid=123597120&loc=SL121967933-165497

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 65
-Paragraph 1
-Subparagraph (i)(2)
-URI http://asc.fasb.org/extlink&oid=123338486&loc=SL49131195-203048

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 65
-Paragraph 6
-Subparagraph (e)(1)
-URI http://asc.fasb.org/extlink&oid=123597120&loc=SL121967933-165497

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(iii)
-URI http://asc.fasb.org/extlink&oid=124501264&loc=SL117420844-207641

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(4)
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22499-107794

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(ii)
-URI http://asc.fasb.org/extlink&oid=124501264&loc=SL117420844-207641

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(i)
-URI http://asc.fasb.org/extlink&oid=124501264&loc=SL117420844-207641

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 65
-Paragraph 8
-Subparagraph (e)(1)
-URI http://asc.fasb.org/extlink&oid=123459177&loc=SL121830611-158277

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

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (e)(1)
-URI http://asc.fasb.org/extlink&oid=123482062&loc=SL123482106-238011

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 20
-Section 65
-Paragraph 2
-Subparagraph (d)(2)
-URI http://asc.fasb.org/extlink&oid=124402435&loc=SL124402458-218513

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 65
-Paragraph 1
-Subparagraph (j)
-URI http://asc.fasb.org/extlink&oid=123338486&loc=SL49131195-203048

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (g)(2)(iv)
-URI http://asc.fasb.org/extlink&oid=124501264&loc=SL117420844-207641

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 926
-SubTopic 20
-Section 65
-Paragraph 2
-Subparagraph (f)(1)
-URI http://asc.fasb.org/extlink&oid=120154821&loc=SL120154904-197079

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section S99
-Paragraph 5
-Subparagraph (SAB Topic 11.M.Q2)
-URI http://asc.fasb.org/extlink&oid=122038215&loc=d3e31137-122693

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 926
-SubTopic 20
-Section 65
-Paragraph 2
-Subparagraph (f)(2)
-URI http://asc.fasb.org/extlink&oid=120154821&loc=SL120154904-197079

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22499-107794

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 926
-SubTopic 20
-Section 65
-Paragraph 2
-Subparagraph (f)(3)
-URI http://asc.fasb.org/extlink&oid=120154821&loc=SL120154904-197079

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 65
-Paragraph 6
-Subparagraph (e)(3)
-URI http://asc.fasb.org/extlink&oid=123597120&loc=SL121967933-165497

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 10
-Section 65
-Paragraph 4
-Subparagraph (e)(1)
-URI http://asc.fasb.org/extlink&oid=122640432&loc=SL121648383-210437

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (c)(1)
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22499-107794

Reference 29: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (h)(2)
-URI http://asc.fasb.org/extlink&oid=124501264&loc=SL117420844-207641

Reference 30: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 10
-Section 65
-Paragraph 4
-Subparagraph (e)(2)
-URI http://asc.fasb.org/extlink&oid=122640432&loc=SL121648383-210437

Reference 31: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(1)
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22499-107794

Reference 32: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 848
-SubTopic 10
-Section 65
-Paragraph 1
-Subparagraph (e)(1)
-URI http://asc.fasb.org/extlink&oid=122150657&loc=SL122150809-237846

Reference 33: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 65
-Paragraph 8
-Subparagraph (e)(3)
-URI http://asc.fasb.org/extlink&oid=123459177&loc=SL121830611-158277

Reference 34: http://www.xbrl.org/2003/role/disclosureRef
-Topic 848
-SubTopic 10
-Name Accounting Standards Codification
-Section 65
-Paragraph 2
-Publisher FASB
-Subparagraph (c)

+ Details

Debt (Tables)

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Schedule of Assets and Liabilities Held by SPE

Below are the assets and liabilities held by the consolidated SPEs, which are included in our Condensed Consolidated Balance Sheets.


	March 31, 2022		December 31, 2021
Assets held by SPEs
Billed portion of finance receivables, net	$	31	$	27
Finance receivables, net	402		299
Finance receivables due after one year, net	597		362
Equipment on operating leases, net	7		8
Restricted cash(1)	37		32
Total Assets	$	1,074	$	728
Liabilities held by SPEs
Current portion of long-term debt, net(2)	$	451	$	350
Long term debt, net(2)	432		210
Total Liabilities	$	883	$	560

_____________

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

(2)Net of debt issuance costs of $2 and $1 as of March 31, 2022 and December 31, 2021, respectively.

Schedule of Interest Income and Interest Expense Disclosure

Interest expense and income were as follows:


	Three Months Ended March 31,
		2022		2021
Interest expense(1)(2)		$	53	$	52
Interest income(3)		54		56

____________

(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 (Loss) Income.

(2)Interest expense of Xerox Corporation included intercompany interest expense associated with the Xerox Holdings Corporation / Xerox Corporation Intercompany Loan of $20 and $20 for the three months ended March 31, 2022 and 2021, respectively.

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

CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME (UNAUDITED) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenues
Total Revenues	$ 1,668	$ 1,710
Costs and Expenses
Cost of financing	24	28
Research, development and engineering expenses	78	74
Selling, administrative and general expenses	455	448
Restructuring and related costs, net	18	17
Amortization of intangible assets	11	15
Other expenses, net	(57)	(4)
Total Costs and Expenses	1,757	1,657
(Loss) Income before Income Taxes and Equity Income	(89)	53
Income tax (benefit) expense	(31)	14
Equity in net income of unconsolidated affiliates	1	0
Net (Loss) Income	(57)	39
Less: Net loss attributable to noncontrolling interests	(1)	0
Net (Loss) Income Attributable to Xerox Holdings	$ (56)	$ 39
Basic (loss) earnings per share (in dollars per share)	$ (0.38)	$ 0.18
Diluted (loss) earnings per share (in dollars per share)	$ (0.38)	$ 0.18
Sales
Revenues
Total Revenues	$ 592	$ 602
Costs and Expenses
Cost of services, maintenance and rentals	435	420
Services, maintenance and rentals
Revenues
Total Revenues	1,023	1,053
Costs and Expenses
Cost of services, maintenance and rentals	679	651
Financing
Revenues
Total Revenues	$ 53	$ 55

Subsequent Events (Details) £ in Millions, $ in Millions, $ in Millions	1 Months Ended			3 Months Ended
	Apr. 30, 2022 USD ($)	Apr. 30, 2022 CAD ($)	Apr. 30, 2022 GBP (£)	Mar. 31, 2022	Apr. 30, 2022 CAD ($)	Jan. 31, 2022 USD ($)	Dec. 31, 2021	Sep. 30, 2021 USD ($)
Subsequent Event [Line Items]
Percentage of total PBO							1.40%
Secured debt								$ 311
Term of debt (years)				2 years 6 months
Special Purpose Entity (SPE)
Subsequent Event [Line Items]
Secured debt						$ 668
Subsequent Event
Subsequent Event [Line Items]
Pension award payment percentage	7.50%	7.50%	7.50%
Increase to PBO	$ 53		£ 40
Subsequent Event \| Special Purpose Entity (SPE) \| Secured Loan Agreement
Subsequent Event [Line Items]
Proceeds from sale of finance receivables	94	$ 119
Subsequent Event \| Special Purpose Entity (SPE) \| Securitization, April 2022 \| Secured Debt
Subsequent Event [Line Items]
Secured debt	$ 85				$ 108
Debt interest rate, percent	3.32%				3.32%
Term of debt (years)	3 years	3 years	3 years

Debt - Assets and Liabilities Held by SPE (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Billed portion of finance receivables, net	$ 89	$ 94
Finance receivables, net	1,023	1,042
Finance receivables due after one year, net	1,893	1,934
Equipment on operating leases, net	254	253
Total Assets	13,070	13,215
Current portion of long-term debt, net	1,450	650
Long-term debt	1,326	2,102
Total Liabilities	8,624	8,508
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	31	27
Finance receivables, net	402	299
Finance receivables due after one year, net	597	362
Equipment on operating leases, net	7	8
Restricted cash	37	32
Total Assets	1,074	728
Current portion of long-term debt, net	451	350
Long-term debt	432	210
Total Liabilities	883	560
Debt issuance costs	$ 2	$ 1

Supplementary Financial Information - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Supplemental Financial Information [Abstract]
Cash and cash equivalents	$ 1,681	$ 1,840
Restricted cash
Litigation deposits in Brazil	42	34
Escrow and cash collections related to secured borrowing arrangements	37	32
Other restricted cash	1	3
Total Restricted cash	80	69
Cash, cash equivalents and restricted cash	$ 1,761	$ 1,909

(Loss) Earnings per Share

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

(Loss) Earnings per Share

Earnings per Share

(shares in thousands)

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


	Three Months Ended March 31,
		2022		2021
Basic (Loss) Earnings per Share
Net (Loss) Income Attributable to Xerox Holdings		$	(56)	$	39
Accrued dividends on preferred stock		(4)		(4)


Adjusted Net (loss) income available to common shareholders		$	(60)	$	35

Weighted average common shares outstanding		156,362		195,985




Basic (Loss) Earnings per Share		$	(0.38)	$	0.18

Diluted (Loss) Earnings per Share
Net (Loss) Income Attributable to Xerox Holdings		$	(56)	$	39
Accrued dividends on preferred stock		(4)		(4)


Adjusted Net (loss) income available to common shareholders		$	(60)	$	35

Weighted average common shares outstanding		156,362		195,985
Common shares issuable with respect to:
Stock options		—		—
Restricted stock and performance shares		—		2,181
Convertible preferred stock		—		—

Adjusted weighted average common shares outstanding		156,362		198,166




Diluted (Loss) Earnings per Share		$	(0.38)	$	0.18

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		612		693
Restricted stock and performance shares		6,470		5,327
Convertible preferred stock		6,742		6,742
Total Anti-Dilutive Securities		13,824		12,762

Dividends per Common Share		$	0.25	$	0.25

Shareholders' Equity of Xerox Holdings - Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	$ 4,697	$ 7,394
Comprehensive income (loss), net	(101)	36
Cash dividends declared - common	(39)	(49)
Cash dividends declared - preferred	(4)	(4)
Stock option and incentive plans, net	4	12
Payments to acquire treasury stock, including fees	(113)	(162)
Cancellation of treasury stock	0
Distributions to noncontrolling interests	(1)
Balance at end of period	$ 4,436	$ 5,701
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	$ 4,690	$ 7,390
Comprehensive income (loss), net	(100)	36
Cash dividends declared - common	(39)	(49)
Cash dividends declared - preferred	(4)	(4)
Stock option and incentive plans, net	4	12
Payments to acquire treasury stock, including fees	(113)	(162)
Balance at end of period	4,431	5,697
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	168	198
Stock option and incentive plans, net		1
Cancellation of treasury stock	(12)
Balance at end of period	$ 156	199
Par value (in dollars per share)	$ 1
Additional Paid-in Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	$ 3,202	4,888
Stock option and incentive plans, net	4	11
Cancellation of treasury stock	(246)
Balance at end of period	3,592	3,360
Treasury Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	(177)	0
Payments to acquire treasury stock, including fees	(113)	(162)
Cancellation of treasury stock	258
Balance at end of period	(32)	(162)
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	4,476	5,834
Comprehensive income (loss), net	(56)	39
Cash dividends declared - common	(39)	(49)
Cash dividends declared - preferred	(4)	(4)
Balance at end of period	3,871	5,672
AOCL
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	(2,988)	(3,332)
Comprehensive income (loss), net	(44)	(3)
Balance at end of period	(3,032)	(3,335)
Non-controlling Interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	7	4
Comprehensive income (loss), net	(1)
Distributions to noncontrolling interests	(1)
Balance at end of period	$ 5	$ 4

Shareholders' Equity of Xerox Holdings - Treasury Stock (Details) shares in Thousands	3 Months Ended
	Mar. 31, 2022 shares
Common Stock
Increase (Decrease) In Treasury Stock [Roll Forward]
Beginning balance (in shares)	168,069
Stock based compensation plans, net (in shares)	630
Acquisition of treasury stock (in shares)	0
Cancellation of treasury stock (in shares)	(12,341)
Ending balance (in shares)	156,358
Treasury Stock
Increase (Decrease) In Treasury Stock [Roll Forward]
Beginning balance (in shares)	8,675
Stock based compensation plans, net (in shares)	0
Acquisition of treasury stock (in shares)	5,174
Cancellation of treasury stock (in shares)	(12,341)
Ending balance (in shares)	1,508

Other Comprehensive (Loss) Income - Accumulated Other Comprehensive Loss (AOCL) (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stockholders' equity	$ 4,436	$ 4,697	$ 5,701	$ 7,394
Cumulative translation adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stockholders' equity	(1,933)	(1,861)
Other unrealized losses, net
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stockholders' equity	(13)	(2)
Benefit plans net actuarial losses and prior service credits
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stockholders' equity	(1,086)	(1,125)
Total Accumulated Other Comprehensive Loss Attributable to Xerox Holdings/Xerox
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stockholders' equity	$ (3,032)	$ (2,988)	$ (3,335)	$ (3,332)

- 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=124436220&loc=d3e21930-107793

Reference 2: 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 3: 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=124436220&loc=d3e21914-107793

Reference 4: 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=124431687&loc=d3e22644-107794

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=124431353&loc=SL124442411-227067

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=122640432&loc=SL121648383-210437

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 105
-SubTopic 10
-Section 65
-Paragraph 6
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=124434974&loc=SL124442142-165695

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 105
-SubTopic 10
-Section 65
-Paragraph 6
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=124434974&loc=SL124442142-165695

Reference 9: 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=123454820&loc=SL4568740-111683

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (e)(3)
-URI http://asc.fasb.org/extlink&oid=123482062&loc=SL123482106-238011

Reference 11: 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=123596393&loc=d3e14064-108612

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 45
-Paragraph 5
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=124436220&loc=d3e21711-107793

Reference 13: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 14: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 830
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6450520&loc=d3e32583-110901

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 65
-Paragraph 8
-Subparagraph (d)(2)
-URI http://asc.fasb.org/extlink&oid=123459177&loc=SL121830611-158277

Reference 17: 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 18: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 65
-Paragraph 8
-Subparagraph (d)(3)
-URI http://asc.fasb.org/extlink&oid=123459177&loc=SL121830611-158277

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (f)(2)
-URI http://asc.fasb.org/extlink&oid=124501264&loc=SL117420844-207641

Reference 20: 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 21: 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 22: 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=124501264&loc=SL117420844-207641

Reference 23: 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 24: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 45
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=123454820&loc=SL4568447-111683

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 65
-Paragraph 15
-Subparagraph (f)(1)
-URI http://asc.fasb.org/extlink&oid=121322162&loc=SL121327923-165333

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(3)
-URI http://asc.fasb.org/extlink&oid=124431687&loc=d3e22499-107794

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

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Topic 848
-SubTopic 10
-Name Accounting Standards Codification
-Section 65
-Paragraph 2
-Publisher FASB
-Subparagraph (a)(3)(iii)(03)

+ Details

Basis of Presentation (Details) $ in Millions	3 Months Ended		12 Months Ended
Basis of Presentation (Details) $ in Millions	Mar. 31, 2022 USD ($) segment unit	Dec. 31, 2021 USD ($)	Dec. 31, 2021 USD ($) segment unit
Segment Reporting, Asset Reconciling Item [Line Items]
Number of reporting units \| unit	2
Number of operating segments \| segment	2		1
Goodwill \| $	$ 3,300	$ 3,287	$ 3,287
Pre-tax impairment charges \| $		$ 781
Print and Other
Segment Reporting, Asset Reconciling Item [Line Items]
Number of reporting units \| unit			1

Finance Receivables, Net - Secured Borrowings and Collateral (Details) - USD ($) $ in Millions	Mar. 31, 2022	Jan. 31, 2022	Dec. 31, 2021	Sep. 30, 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Finance receivables, net	$ 3,005		$ 3,070
Special Purpose Entity (SPE) \| Secured Loan Agreement 1
Financing Receivable, Allowance for Credit Loss [Line Items]
Finance receivables, net	758
Special Purpose Entity (SPE) \| Secured Loan Agreement 2
Financing Receivable, Allowance for Credit Loss [Line Items]
Finance receivables, net	$ 272		$ 308
Special Purpose Entity (SPE)
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing receivables sold		$ 789		$ 331

Fair Value of Financial Assets and Liabilities -Fair Value of Financial Assets and Liabilities (Details) - Recurring - Level 2 - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Assets
Total	$ 24	$ 23
Liabilities
Total	48	29
Foreign exchange contracts - forwards
Assets
Total	4	4
Liabilities
Total	32	11
Interest rate cap
Assets
Total	3	1
Deferred compensation plan investments in mutual funds
Assets
Total	17	18
Liabilities
Total	$ 16	$ 18

Finance Receivables, Net

3 Months Ended

Mar. 31, 2022

Receivables [Abstract]

Finance Receivables, Net

Accounts Receivable, Net

Accounts receivable, net were as follows:


	March 31, 2022		December 31, 2021
Invoiced	$	658	$	660
Accrued(1)	212		216
Allowance for doubtful accounts	(63)		(58)
Accounts receivable, net	$	807	$	818

_____________

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

The allowance for doubtful accounts was as follows:


	2022		2021
Balance at January 1st	$	58	$	69
Provision	9		4
Charge-offs	(3)		(5)
Recoveries and other(1)	(1)		0
Balance at March 31st	$	63	$	68

_____________

(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 7.2% at March 31, 2022 and 6.6% at December 31, 2021. The increase in the allowance is primarily due to an increased provision to cover expected write-offs of receivables in our Russian subsidiary.

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, $87 and $102 remained uncollected as of March 31, 2022 and December 31, 2021, respectively.

Accounts receivable sales activity was as follows:


	Three Months Ended March 31,
		2022		2021
Accounts receivable sales(1)		$	116	$	107

____________

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, 2022		December 31, 2021
Gross receivables	$	3,490	$	3,568
Unearned income	(365)		(380)
Subtotal	3,125		3,188
Residual values	—		—
Allowance for doubtful accounts	(120)		(118)
Finance receivables, net	3,005		3,070
Less: Billed portion of finance receivables, net	89		94
Less: Current portion of finance receivables not billed, net	1,023		1,042
Finance receivables due after one year, net	$	1,893	$	1,934

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 doubtful credit losses is principally determined 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 3.8% at March 31, 2022 and 3.7% at December 31, 2021. In determining the level of reserve required, we critically assessed current and forecasted economic conditions in light of the COVID-19 pandemic to ensure we objectively included those expected impacts in the determination of our reserve. Our assessment also included a review of current portfolio credit metrics and the level of write-offs incurred over the past year of the COVID-19 pandemic.

Our allowance for doubtful finance receivables is effectively determined by geography. The risk characteristics in our finance receivable portfolio segments are generally 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.

Although actual finance receivable write-offs incurred to date continue to lag expectations, we believe our current reserve position remains sufficient to cover expected future losses that may result from current and future macro-economic conditions. We continue to believe that uncertainties remain as economies continue to recover from the impacts of the COVID-19 pandemic including the cessation of government support as well as labor, interest rate and inflation risks and the potential for higher taxes. In addition, there is also considerable uncertainty regarding the impact the Russia/Ukraine war and related global sanctions will have on the macro or global economy. As a result of these uncertainties, our reserves as a percent of receivables have remained elevated and fairly consistent subsequent to the first quarter 2020 increase to initially record expected losses from the COVID-19 pandemic. We continue to monitor developments in future economic conditions, and as a result, our reserves may need to be updated in future periods.

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, 2021	$	77	$	11	$	30	$	118
Provision	3		—		3		6
Charge-offs	(2)		(1)		(1)		(4)
Recoveries and other(2)	—		1		(1)		—
Balance at March 31, 2022	$	78	$	11	$	31	$	120









Finance receivables as of March 31, 2022 collectively evaluated for impairment (3)	$	1,863	$	246	$	1,016	$	3,125

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

_____________

(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 $120 and $135 at March 31, 2022 and 2021, 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 and 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, 2022
	2022		2021		2020		2019		2018		Prior		Total Finance Receivables
United States (Direct)
Low Credit Risk	$	43	$	128	$	110	$	85	$	54	$	15	$	435
Average Credit Risk	24		47		39		52		20		7		189
High Credit Risk	12		86		66		27		12		5		208
Total	$	79	$	261	$	215	$	164	$	86	$	27	$	832

United States (Indirect)
Low Credit Risk	$	66	$	205	$	124	$	83	$	30	$	7	$	515
Average Credit Risk	55		200		99		69		31		6		460
High Credit Risk	8		24		14		6		3		1		56
Total	$	129	$	429	$	237	$	158	$	64	$	14	$	1,031

Canada
Low Credit Risk	$	5	$	30	$	26	$	20	$	11	$	3	$	95
Average Credit Risk	8		33		32		25		13		5		116
High Credit Risk	1		8		12		6		5		3		35
Total	$	14	$	71	$	70	$	51	$	29	$	11	$	246

EMEA(1)
Low Credit Risk	$	107	$	190	$	120	$	90	$	49	$	11	$	567
Average Credit Risk	76		126		86		69		30		8		395
High Credit Risk	9		15		13		11		5		1		54
Total	$	192	$	331	$	219	$	170	$	84	$	20	$	1,016







Total Finance Receivables
Low Credit Risk	$	221	$	553	$	380	$	278	$	144	$	36	$	1,612
Average Credit Risk	163		406		256		215		94		26		1,160
High Credit Risk	30		133		105		50		25		10		353
Total	$	414	$	1,092	$	741	$	543	$	263	$	72	$	3,125


	December 31, 2021
	2021		2020		2019		2018		2017		Prior		Total Finance Receivables
United States (Direct)
Low Credit Risk	$	148	$	121	$	98	$	68	$	21	$	3	$	459
Average Credit Risk	60		40		57		23		8		2		190
High Credit Risk	91		73		31		16		6		1		218
Total	$	299	$	234	$	186	$	107	$	35	$	6	$	867

United States (Indirect)
Low Credit Risk	$	235	$	145	$	100	$	43	$	11	$	—	$	534
Average Credit Risk	201		103		74		35		10		—		423
High Credit Risk	24		15		8		4		1		—		52
Total	$	460	$	263	$	182	$	82	$	22	$	—	$	1,009

Canada
Low Credit Risk	$	32	$	27	$	22	$	13	$	3	$	1	$	98
Average Credit Risk	34		34		27		15		6		1		117
High Credit Risk	8		12		7		5		4		—		36
Total	$	74	$	73	$	56	$	33	$	13	$	2	$	251

EMEA(1)
Low Credit Risk	$	229	$	143	$	121	$	71	$	22	$	6	$	592
Average Credit Risk	156		109		84		45		15		3		412
High Credit Risk	18		15		13		8		3		—		57
Total	$	403	$	267	$	218	$	124	$	40	$	9	$	1,061







Total Finance Receivables
Low Credit Risk	$	644	$	436	$	341	$	195	$	57	$	10	$	1,683
Average Credit Risk	451		286		242		118		39		6		1,142
High Credit Risk	141		115		59		33		14		1		363
Total	$	1,236	$	837	$	642	$	346	$	110	$	17	$	3,188

_____________

(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, 2022
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Direct	$	26	$	6	$	7	$	39	$	793	$	832	$	50
Indirect	23		6		4		33		998		1,031		—






Total United States	49		12		11		72		1,791		1,863		50
Canada	6		2		—		8		238		246		10





EMEA(1)	8		2		1		11		1,005		1,016		9

Total	$	63	$	16	$	12	$	91	$	3,034	$	3,125	$	69

	December 31, 2021
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Direct	$	28	$	7	$	7	$	42	$	825	$	867	$	61
Indirect	28		5		4		37		972		1,009		—






Total United States	56		12		11		79		1,797		1,876		61
Canada	6		1		—		7		244		251		9





EMEA(1)	9		2		1		12		1,049		1,061		13

Total	$	71	$	15	$	12	$	98	$	3,090	$	3,188	$	83

_____________

(1)Includes developing market countries

Secured Borrowings and Collateral

In January 2022, we sold $789 of U.S. based finance receivables to a consolidated special purpose entity (SPE). At March 31, 2022, the SPE held $758 of total Finance receivables, net, which are included in our Condensed Consolidated Balance Sheet as collateral for a secured loan.

In September 2021, we sold $331 of U.S. based finance receivables to a consolidated SPE. At March 31, 2022 and December 31, 2021, the SPE held $272 and $308, respectively, of total Finance receivables, net, which are included in our Condensed Consolidated Balance Sheet as collateral for a secured loan.

Refer to Note 13 - Debt, for additional information related to these arrangements.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Accounts receivable, allowance for credit loss, current	$ 63	$ 58
Billed portion of finance receivables, net	3	4
Finance receivables, allowance for credit loss, noncurrent	$ 117	$ 114

Finance Receivables, Net (Tables)

3 Months Ended

Mar. 31, 2022

Receivables [Abstract]

Schedule of Finance Receivables

Finance receivables, net were as follows:


	March 31, 2022		December 31, 2021
Gross receivables	$	3,490	$	3,568
Unearned income	(365)		(380)
Subtotal	3,125		3,188
Residual values	—		—
Allowance for doubtful accounts	(120)		(118)
Finance receivables, net	3,005		3,070
Less: Billed portion of finance receivables, net	89		94
Less: Current portion of finance receivables not billed, net	1,023		1,042
Finance receivables due after one year, net	$	1,893	$	1,934

Schedule of 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, 2021	$	77	$	11	$	30	$	118
Provision	3		—		3		6
Charge-offs	(2)		(1)		(1)		(4)
Recoveries and other(2)	—		1		(1)		—
Balance at March 31, 2022	$	78	$	11	$	31	$	120









Finance receivables as of March 31, 2022 collectively evaluated for impairment (3)	$	1,863	$	246	$	1,016	$	3,125

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

_____________

(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 $120 and $135 at March 31, 2022 and 2021, respectively.

Schedule of 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, 2022
	2022		2021		2020		2019		2018		Prior		Total Finance Receivables
United States (Direct)
Low Credit Risk	$	43	$	128	$	110	$	85	$	54	$	15	$	435
Average Credit Risk	24		47		39		52		20		7		189
High Credit Risk	12		86		66		27		12		5		208
Total	$	79	$	261	$	215	$	164	$	86	$	27	$	832

United States (Indirect)
Low Credit Risk	$	66	$	205	$	124	$	83	$	30	$	7	$	515
Average Credit Risk	55		200		99		69		31		6		460
High Credit Risk	8		24		14		6		3		1		56
Total	$	129	$	429	$	237	$	158	$	64	$	14	$	1,031

Canada
Low Credit Risk	$	5	$	30	$	26	$	20	$	11	$	3	$	95
Average Credit Risk	8		33		32		25		13		5		116
High Credit Risk	1		8		12		6		5		3		35
Total	$	14	$	71	$	70	$	51	$	29	$	11	$	246

EMEA(1)
Low Credit Risk	$	107	$	190	$	120	$	90	$	49	$	11	$	567
Average Credit Risk	76		126		86		69		30		8		395
High Credit Risk	9		15		13		11		5		1		54
Total	$	192	$	331	$	219	$	170	$	84	$	20	$	1,016







Total Finance Receivables
Low Credit Risk	$	221	$	553	$	380	$	278	$	144	$	36	$	1,612
Average Credit Risk	163		406		256		215		94		26		1,160
High Credit Risk	30		133		105		50		25		10		353
Total	$	414	$	1,092	$	741	$	543	$	263	$	72	$	3,125


	December 31, 2021
	2021		2020		2019		2018		2017		Prior		Total Finance Receivables
United States (Direct)
Low Credit Risk	$	148	$	121	$	98	$	68	$	21	$	3	$	459
Average Credit Risk	60		40		57		23		8		2		190
High Credit Risk	91		73		31		16		6		1		218
Total	$	299	$	234	$	186	$	107	$	35	$	6	$	867

United States (Indirect)
Low Credit Risk	$	235	$	145	$	100	$	43	$	11	$	—	$	534
Average Credit Risk	201		103		74		35		10		—		423
High Credit Risk	24		15		8		4		1		—		52
Total	$	460	$	263	$	182	$	82	$	22	$	—	$	1,009

Canada
Low Credit Risk	$	32	$	27	$	22	$	13	$	3	$	1	$	98
Average Credit Risk	34		34		27		15		6		1		117
High Credit Risk	8		12		7		5		4		—		36
Total	$	74	$	73	$	56	$	33	$	13	$	2	$	251

EMEA(1)
Low Credit Risk	$	229	$	143	$	121	$	71	$	22	$	6	$	592
Average Credit Risk	156		109		84		45		15		3		412
High Credit Risk	18		15		13		8		3		—		57
Total	$	403	$	267	$	218	$	124	$	40	$	9	$	1,061







Total Finance Receivables
Low Credit Risk	$	644	$	436	$	341	$	195	$	57	$	10	$	1,683
Average Credit Risk	451		286		242		118		39		6		1,142
High Credit Risk	141		115		59		33		14		1		363
Total	$	1,236	$	837	$	642	$	346	$	110	$	17	$	3,188

_____________

(1)Includes developing market countries.

Schedule of Aging of Billed Finance Receivables

The aging of our billed finance receivables is as follows:


	March 31, 2022
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Direct	$	26	$	6	$	7	$	39	$	793	$	832	$	50
Indirect	23		6		4		33		998		1,031		—






Total United States	49		12		11		72		1,791		1,863		50
Canada	6		2		—		8		238		246		10





EMEA(1)	8		2		1		11		1,005		1,016		9

Total	$	63	$	16	$	12	$	91	$	3,034	$	3,125	$	69

	December 31, 2021
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Direct	$	28	$	7	$	7	$	42	$	825	$	867	$	61
Indirect	28		5		4		37		972		1,009		—






Total United States	56		12		11		79		1,797		1,876		61
Canada	6		1		—		7		244		251		9





EMEA(1)	9		2		1		12		1,049		1,061		13

Total	$	71	$	15	$	12	$	98	$	3,090	$	3,188	$	83

_____________

(1)Includes developing market countries

Basis of Presentation	3 Months Ended
Basis of Presentation	Mar. 31, 2022
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 2021 Annual Report on Form 10-K (2021 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 2021 Annual Report. In our opinion, all adjustments 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. For convenience and ease of reference, we refer to the financial statement caption “(Loss) Income before Income Taxes and Equity Income” as “pre-tax (loss) income”. Notes to the Condensed Consolidated Financial Statements reflect the activity for both Xerox Holdings and Xerox for all periods presented, unless otherwise noted. Segments During the first quarter of 2022, the Company made a change to its reportable segments from one reportable segment to two reportable segments - Print and Other, and Financing (FITTLE) - to align with a change in how the Chief Operating Decision Maker (CODM), our Chief Executive Officer (CEO), allocates resources and assesses performance against the Company’s key growth strategies. As such, prior period reportable segment results and related disclosures have been conformed to reflect the Company’s current reportable segments. Refer to Note 4 - Segment Reporting for additional information regarding this change. Goodwill Interim Impairment Evaluation Our goodwill balance was $3.3 billion at March 31, 2022 and December 31, 2021, respectively. The balance at December 31, 2021 reflects a pre-tax impairment charge of $781 recorded in the fourth quarter 2021 after completion of our fourth quarter annual goodwill impairment assessment. We assess goodwill for impairment at least annually during the fourth quarter and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. As noted above, during the first quarter 2022, the Company made a change to its operating and reportable segments from one operating/reportable segment - Printing - to two operating/reportable segments - Print and Other, and Financing (FITTLE). As a result of the new operating and reportable segments, we also reassessed our reporting units for the evaluation of goodwill. Prior to this change, consistent with the determination that we had one operating/reportable segment, we determined that we had one reporting unit for goodwill assessment purposes. Our reassessment during the first quarter of 2022 determined that likewise consistent with the determination that we had two operating/reportable segments, we now have two reporting units – Print and Other, and Financing (FITTLE). As a result of the change in reporting units, effective January 1, 2022, we estimated the fair value of our new reporting units and, based on an assessment of the relative fair values of our new reporting units after the change, we determined that no goodwill was allocable to the Financing (FITTLE) segment. This determination was largely based on the fact that at this stage in the stand-up of the Financing (FITTLE) business, its separate valuation is constrained and limited because the operation is significantly integrated with the Print and Other segment and is primarily an extension or enabler to facilitate the sale of the Company’s products. The change in reporting units was also considered a triggering event indicating a test for goodwill impairment was required as of January 1, 2022 before and after the change in reporting units. The Company performed those impairment tests, which did not result in the identification of an impairment loss as of January 1, 2022. During the first quarter 2022, the Company encountered significant operational challenges and uncertainties, due to supply chain constraints, inflationary pressure on costs, geopolitical uncertainty in Europe and the threat of additional COVID-19 variants. Despite these uncertainties, the Company expects to maintain its full year 2022 financial outlook since at this stage in the year we do not have enough information or clarity (positive or negative) on these uncertainties to warrant an adjustment in our outlook. Accordingly, based on our interim assessment as of March 31, 2022, we determined that it was more-likely-than-not that the fair value of Print and Other reporting unit (the only reporting unit with goodwill) was still greater than its net book value and that we did not have a “triggering event” requiring a quantitative assessment of Goodwill. Despite indications that our excess fair value is likely reduced as compared to the impairment test as of January 1, 2022, the Company's projections for the full year 2022, reviewed as part of our quantitative analysis, are still within the range of our sensitivity analysis performed as part of our January 1, 2022 interim impairment assessment. If assumptions or estimates with respect to the Company's future performance vary from what is expected, including those assumptions relating to the supply chain constraints, inflationary pressure on costs, geopolitical uncertainty in Europe and the threat of additional COVID-19 variants, 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.

Lessor (Details) - USD ($) $ in Millions	3 Months Ended
Lessor (Details) - USD ($) $ in Millions	Mar. 31, 2022	Mar. 31, 2021
Leases [Abstract]
Revenue from sales type leases	$ 135	$ 147
Interest income on lease receivables	53	55
Lease income - operating leases	48	67
Variable lease income	15	15
Total Lease income	251	284
Profit at lease commencement, sales type leases	$ 44	$ 56

Employee Benefit Plans (Tables)

3 Months Ended

Mar. 31, 2022

Retirement Benefits [Abstract]

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

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


























	Three Months Ended March 31,
	Pension Benefits
	U.S. Plans				Non-U.S. Plans				Retiree Health
Components of Net Periodic Benefit Costs:	2022		2021		2022		2021		2022		2021
Service cost	$	—	$	—	$	4	$	5	$	—	$	1
Interest cost	20		18		29		22		2		2
Expected return on plan assets	(27)		(28)		(55)		(52)		—		—
Recognized net actuarial loss	4		5		6		15		—		—
Amortization of prior service credit	—		—		—		—		(4)		(17)
Recognized settlement loss	18		15		—		—		—		—

Defined benefit plans	15		10		(16)		(10)		(2)		(14)
Defined contribution plans	5		—		4		5		n/a		n/a
Net Periodic Benefit Cost (Credit)	20		10		(12)		(5)		(2)		(14)

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income:
Net actuarial loss (gain)(1)	14		(44)		—		1		(7)		—
Prior service credit	—		—		—		—		(23)		—
Amortization of net actuarial loss	(22)		(20)		(6)		(15)		—		—
Amortization of prior service credit	—		—		—		—		4		17

Total Recognized in Other Comprehensive (Loss) Income(2)	(8)		(64)		(6)		(14)		(26)		17
Total Recognized in Net Periodic Benefit Cost (Credit) and Other Comprehensive (Loss) Income	$	12	$	(54)	$	(18)	$	(19)	$	(28)	$	3

_____________

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

Schedule of 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,
	2022		2021		Estimated 2022		2021
U.S. plans	$	6	$	6	$	25	$	24
Non-U.S. plans	26		29		110		111
Total Pension plans	32		35		135		135
Retiree Health	6		6		25		25
Total Retirement plans	$	38	$	41	$	160	$	160

Restructuring Programs

3 Months Ended

Mar. 31, 2022

Restructuring and Related Activities [Abstract]

Restructuring Programs

We engage in restructuring actions, including Project Own It, as well as other transformation efforts in order to reduce our cost structure and realign it to the changing nature of our business. As part of our efforts to reduce costs, our restructuring actions may also include the off-shoring and/or outsourcing of certain operations, services and other functions, as well as reducing our real estate footprint.

During the three months ended March 31, 2022, we recorded net restructuring and asset impairment charges of $20, which included $22 of severance costs related to headcount reductions of approximately 450 employees worldwide and $1 of asset impairment charges, both of which were partially offset by $3 of net reversals. The net reversals primarily resulted from changes in estimated reserves from prior period initiatives. Charges were primarily related to the Print and Other segment as amounts related to the Financing (FITTLE) segment were immaterial for all periods presented.

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, 2021	$	25	$	2	$	—	$	27
Provision	22		—		1		23
Reversals	(3)		—		—		(3)
Net current period charges(1)	19		—		1		20
Charges against reserve and currency	(7)		—		(1)		(8)
Balance at March 31, 2022	$	37	$	2	$	—	$	39

______________

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

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

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


	Three Months Ended March 31,
		2022		2021
Charges against reserve and currency		$	(8)	$	(40)
Asset impairments		1		—
Effects of foreign currency and other non-cash items		—		13
Restructuring cash payments		$	(7)	$	(27)

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


	Three Months Ended March 31,
		2022		2021
Retention related severance/bonuses(1)		$	(2)	$	(4)


Total		$	(2)	$	(4)

_____________

Cash paid for restructuring related costs were $1 and $3 for the three months ended March 31, 2022 and 2021, respectively. The restructuring related costs reserve was $15 and $18 at March 31, 2022 and December 31, 2021, respectively. The balance at March 31, 2022 is expected to be paid over the next twelve months.

CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME (UNAUDITED) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenues
Total Revenues	$ 1,668	$ 1,710
Costs and Expenses
Cost of financing	24	28
Research, development and engineering expenses	78	74
Selling, administrative and general expenses	455	448
Restructuring and related costs, net	18	17
Amortization of intangible assets	11	15
Other expenses, net	57	4
Total Costs and Expenses	1,757	1,657
(Loss) Income before Income Taxes and Equity Income	(89)	53
Income tax (benefit) expense	(31)	14
Equity in net income of unconsolidated affiliates	1	0
Net (Loss) Income	(57)	39
Less: Net loss attributable to noncontrolling interests	(1)	0
Net (Loss) Income Attributable to Xerox Holdings	(56)	39
Sales
Revenues
Total Revenues	592	602
Costs and Expenses
Cost of services, maintenance and rentals	435	420
Services, maintenance and rentals
Revenues
Total Revenues	1,023	1,053
Costs and Expenses
Cost of services, maintenance and rentals	679	651
Financing
Revenues
Total Revenues	$ 53	$ 55

Revenue

3 Months Ended

Mar. 31, 2022

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,
		2022		2021
Primary geographical markets(1):
United States		$	940	$	974
Europe		466		499
Canada		115		93
Other		147		144
Total Revenues		$	1,668	$	1,710

Major product and services lines:
Equipment		$	314	$	381
Supplies, paper and other sales		278		221
Maintenance agreements(2)		429		435
Service arrangements(3)		486		489
Rental and other		108		129
Financing		53		55

Total Revenues		$	1,668	$	1,710

Sales channels:

Direct equipment lease(4)		$	135	$	147
Distributors & resellers(5)		261		254
Customer direct		196		201
Total Sales		$	592	$	602

_____________

(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 arrangements. Also includes revenues from embedded operating leases in our Managed Service arrangements, 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 advance billings for maintenance and other services to be performed and were approximately $138 and $144 at March 31, 2022 and December 31, 2021, respectively. The majority of the balance at March 31, 2022 will be amortized to revenue over approximately the next 30 months.

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

Incremental direct costs are as follows:


	Three Months Ended March 31,
		2022		2021
Incremental direct costs of obtaining a contract		$	13	$	13
Amortization of incremental direct costs		18		19

The balance of deferred incremental direct costs net of accumulated amortization at March 31, 2022 and December 31, 2021 was $128 and $132, 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, 2022 and December 31, 2021, amounts deferred associated with contract fulfillment costs and inducements were $14 and $15, respectively, and the related amortization was $1 and $1 for the three months ended March 31, 2022 and 2021, respectively.

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

- Definition

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

+ References

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

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

+ Details

Other Comprehensive (Loss) Income (Tables)

3 Months Ended

Mar. 31, 2022

Equity [Abstract]

Schedule of Other Comprehensive Income (Loss)

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


	Three Months Ended March 31,
		2022	2021
			Pre-tax		Net of Tax		Pre-tax		Net of Tax
Translation Adjustments Losses			$	(71)	$	(72)	$	(52)	$	(51)
Unrealized (Losses) Gains
Changes in fair value of cash flow hedges losses			(15)		(13)		(10)		(8)
Changes in cash flow hedges reclassed to earnings(1)			2		2		1		1

Net Unrealized Losses			(13)		(11)		(9)		(7)

Defined Benefit Plans Gains (Losses)
Net actuarial/prior service gains			16		12		43		32
Prior service amortization(2)			(4)		(3)		(17)		(12)
Actuarial loss amortization/settlement(2)			28		21		35		26

Other gains(3)			9		9		9		9
Changes in Defined Benefit Plans Gains			49		39		70		55



Other Comprehensive (Loss) Income Attributable to Xerox Holdings/Xerox			$	(35)	$	(44)	$	9	$	(3)

____________

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

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

(3)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, 2022		December 31, 2021
Cumulative translation adjustments	$	(1,933)	$	(1,861)
Other unrealized losses, net	(13)		(2)
Benefit plans net actuarial losses and prior service credits	(1,086)		(1,125)
Total Accumulated Other Comprehensive Loss Attributable to Xerox Holdings/Xerox	$	(3,032)	$	(2,988)

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Disaggregation of Revenue [Line Items]
Total Revenues	$ 1,668	$ 1,710
Equipment
Disaggregation of Revenue [Line Items]
Total Revenues	314	381
Supplies, paper and other sales
Disaggregation of Revenue [Line Items]
Total Revenues	278	221
Maintenance agreements
Disaggregation of Revenue [Line Items]
Total Revenues	429	435
Service arrangements
Disaggregation of Revenue [Line Items]
Total Revenues	486	489
Rental and other
Disaggregation of Revenue [Line Items]
Total Revenues	108	129
Financing
Disaggregation of Revenue [Line Items]
Total Revenues	53	55
Sales
Disaggregation of Revenue [Line Items]
Total Revenues	592	602
Sales \| Direct equipment lease
Disaggregation of Revenue [Line Items]
Total Revenues	135	147
Sales \| Distributors & resellers
Disaggregation of Revenue [Line Items]
Total Revenues	261	254
Sales \| Customer direct
Disaggregation of Revenue [Line Items]
Total Revenues	196	201
United States
Disaggregation of Revenue [Line Items]
Total Revenues	940	974
Europe
Disaggregation of Revenue [Line Items]
Total Revenues	466	499
Canada
Disaggregation of Revenue [Line Items]
Total Revenues	115	93
Other
Disaggregation of Revenue [Line Items]
Total Revenues	$ 147	$ 144

Financial Instruments - Derivative Instruments Fair Value (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative assets	$ 7	$ 5
Derivative liabilities	(32)	(11)
Net derivative (liability) asset	(25)	(6)
Derivatives Designated as Hedging Instruments
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Net derivative (liability) asset	(15)	(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 \| Accrued expenses and other current liabilities \| Foreign exchange contracts - forwards
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative liabilities	(19)	(6)
Derivatives Designated as Hedging Instruments \| Other long-term assets \| Interest rate cap
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative assets	3	1
Derivatives NOT Designated as Hedging Instruments \| Foreign exchange contracts - forwards
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Net derivative (liability) asset	(10)	(4)
Derivatives NOT Designated as Hedging Instruments \| Other current assets \| Foreign exchange contracts - forwards
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative assets	3	1
Derivatives NOT Designated as Hedging Instruments \| Accrued expenses and other current liabilities \| Foreign exchange contracts - forwards
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative liabilities	$ (13)	$ (5)

Finance Receivables, Net - Allowance for Credit Losses (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 118	$ 133
Provision	6	6
Charge-offs	(4)	(3)
Recoveries and other	0	(1)
Ending balance	120	135
Finance receivables collectively evaluated for impairment	$ 3,125	3,212
Loss rates of customers with investment grade credit quality	1.00%
Loss rates of customers with non investment grade credit quality, low range	2.00%
Loss rates of customers with non investment grade credit quality, high range	5.00%
Loss rates of customers with substandard doubtful credit quality - low	7.00%
Loss rates of customers with substandard doubtful credit quality - high	10.00%
United States
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 77	77
Provision	3	2
Charge-offs	(2)	(2)
Recoveries and other	0	1
Ending balance	78	78
Finance receivables collectively evaluated for impairment	1,863	1,806
Canada
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	11	15
Provision	0	1
Charge-offs	(1)	0
Recoveries and other	1	0
Ending balance	11	16
Finance receivables collectively evaluated for impairment	246	288
EMEA
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	30	41
Provision	3	3
Charge-offs	(1)	(1)
Recoveries and other	(1)	(2)
Ending balance	31	41
Finance receivables collectively evaluated for impairment	$ 1,016	$ 1,118

Inventories and Equipment on Operating Leases, Net - Equipment on Operating Leases and Related Accumulated Depreciation (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Inventories and Equipment on Operating Leases, Net [Abstract]
Equipment on operating leases	$ 1,256	$ 1,266
Accumulated depreciation	(1,002)	(1,013)
Equipment on operating leases, net	$ 254	$ 253

(Loss) Earnings per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Basic (Loss) Earnings per Share
Net (Loss) Income Attributable to Xerox Holdings	$ (56)	$ 39
Accrued dividends on preferred stock	(4)	(4)
Adjusted Net (loss) income available to common shareholders	$ (60)	$ 35
Weighted average common shares outstanding (in shares)	156,362	195,985
Basic (Loss) Earnings per Share (in dollars per share)	$ (0.38)	$ 0.18
Diluted (Loss) Earnings per Share
Net (Loss) Income Attributable to Xerox Holdings	$ (56)	$ 39
Accrued dividends on preferred stock	(4)	(4)
Adjusted Net (loss) income available to common shareholders	$ (60)	$ 35
Weighted average common shares outstanding (in shares)	156,362	195,985
Common shares issuable with respect to:
Adjusted weighted average common shares outstanding (in shares)	156,362	198,166
Diluted (loss) earnings per share (in dollars per share)	$ (0.38)	$ 0.18
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)	0	2,181
Convertible preferred stock
Common shares issuable with respect to:
Common shares attributable to dilutive effect of share-based payments (in shares)	0	0

Employee Benefit Plans - Contributions and Narrative (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Schedule of Defined Benefit Plans Disclosures [Line Items]
Defined benefit plan, contributions by employer	$ 38,000,000	$ 41,000,000	$ 160,000,000
Defined benefit plan, expected future employer contributions	160,000,000
Pension Benefits
Schedule of Defined Benefit Plans Disclosures [Line Items]
Defined benefit plan, contributions by employer	32,000,000	35,000,000	135,000,000
Defined benefit plan, expected future employer contributions	135,000,000
Retiree Health
Schedule of Defined Benefit Plans Disclosures [Line Items]
Defined benefit plan, contributions by employer	6,000,000	6,000,000	25,000,000
Defined benefit plan, expected future employer contributions	25,000,000
Reduction in the Company's postretirement benefit obligation	23,000,000	0
United States \| Pension Benefits
Schedule of Defined Benefit Plans Disclosures [Line Items]
Defined benefit plan, contributions by employer	6,000,000	6,000,000	24,000,000
Defined benefit plan, expected future employer contributions	25,000,000
Reduction in the Company's postretirement benefit obligation	0	0
United States \| Pension Benefits \| Qualified Plan
Schedule of Defined Benefit Plans Disclosures [Line Items]
Mandatory future contributions	0
Non-U.S. Plans \| Pension Benefits
Schedule of Defined Benefit Plans Disclosures [Line Items]
Defined benefit plan, contributions by employer	26,000,000	29,000,000	$ 111,000,000
Defined benefit plan, expected future employer contributions	110,000,000
Reduction in the Company's postretirement benefit obligation	$ 0	$ 0

Lessor

3 Months Ended

Mar. 31, 2022

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 (Loss) Income		2022		2021
Revenue from sales type leases	Sales		$	135	$	147


Interest income on lease receivables	Financing		53		55


Lease income - operating leases	Services, maintenance and rentals		48		67
Variable lease income	Services, maintenance and rentals		15		15
Total Lease income			$	251	$	284

Profit at lease commencement on sales-type leases was estimated to be $44 and $56 for the three months ended March 31, 2022 and 2021, respectively.

Lessor

The components of lease income are as follows:


		Three Months Ended March 31,
	Location in Statements of (Loss) Income		2022		2021
Revenue from sales type leases	Sales		$	135	$	147


Interest income on lease receivables	Financing		53		55


Lease income - operating leases	Services, maintenance and rentals		48		67
Variable lease income	Services, maintenance and rentals		15		15
Total Lease income			$	251	$	284

Profit at lease commencement on sales-type leases was estimated to be $44 and $56 for the three months ended March 31, 2022 and 2021, respectively.

Accounts Receivable, Net - Accounts Receivable Sales Arrangements (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Accounts Receivable Sales Arrangements [Abstract]
Uncollected accounts receivable sold and derecognized	$ 87		$ 102
Accounts Receivable
Accounts Receivable Sales Arrangements [Abstract]
Accounts receivable sales	$ 116	$ 107

(Loss) Earnings per Share - Anti-Dilutive Securities (Details) - $ / shares shares in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive securities (in shares)	13,824	12,762
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)	612	693
Restricted stock and performance shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive securities (in shares)	6,470	5,327
Convertible preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive securities (in shares)	6,742	6,742

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

3 Months Ended

Mar. 31, 2022

Mar. 31, 2021

Accumulated Other Comprehensive Income (Loss) [Line Items]

Other Comprehensive Loss, Net Attributable to Xerox Holdings

^[1]

$ (44)

$ (3)

Translation Adjustments Losses

Accumulated Other Comprehensive Income (Loss) [Line Items]

Other comprehensive (loss) income, pre-tax

(71)

(52)

Other Comprehensive Loss, Net

(72)

(51)

Unrealized (Losses) Gains

Accumulated Other Comprehensive Income (Loss) [Line Items]

Other comprehensive (loss) income, pre-tax

(13)

(9)

Other Comprehensive Loss, Net

(11)

(7)

Change in fair value of cash flow hedges losses, pre-tax

(15)

(10)

Change in fair value of cash flow hedges losses, net of tax

(13)

(8)

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

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

Net actuarial/prior service gains

Accumulated Other Comprehensive Income (Loss) [Line Items]

Other comprehensive (loss) income, pre-tax

Other Comprehensive Loss, Net

Prior service amortization

Accumulated Other Comprehensive Income (Loss) [Line Items]

Other comprehensive (loss) income, pre-tax

(4)

(17)

Other Comprehensive Loss, Net

(3)

(12)

Actuarial loss amortization / settlement

Accumulated Other Comprehensive Income (Loss) [Line Items]

Other comprehensive (loss) income, pre-tax

Other Comprehensive Loss, Net

Other gains

Accumulated Other Comprehensive Income (Loss) [Line Items]

Other comprehensive (loss) income, pre-tax

Other Comprehensive Loss, Net

Changes in Defined Benefit Plans Gains

Accumulated Other Comprehensive Income (Loss) [Line Items]

Other comprehensive (loss) income, pre-tax

Other Comprehensive Loss, Net

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

Accumulated Other Comprehensive Income (Loss) [Line Items]

Other comprehensive (loss) income, attributable to Xerox Holdings/Xerox, pre-tax

(35)

Other Comprehensive Loss, Net Attributable to Xerox Holdings

$ (44)

$ (3)

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

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
$ in Millions

3 Months Ended

Mar. 31, 2022

Mar. 31, 2021

Cash Flows from Operating Activities

Net (Loss) Income

$ (57)

$ 39

Adjustments required to reconcile Net (loss) income to Cash flows from operating activities

Depreciation and amortization

Provisions

Stock-based compensation

Restructuring and asset impairment charges

Payments for restructurings

(7)

(27)

Non-service retirement-related costs

^[1]

(7)

(20)

Contributions to retirement plans

^[1]

(38)

(41)

Decrease in accounts receivable and billed portion of finance receivables

Increase in inventories

(31)

(18)

Increase in equipment on operating leases

(36)

(28)

Decrease in finance receivables

(Increase) decrease in other current and long-term assets

(1)

Increase (decrease) in accounts payable

111

(31)

Increase (decrease) in accrued compensation

^[1]

(10)

Decrease in other current and long-term liabilities

(43)

(35)

Net change in income tax assets and liabilities

(39)

Net change in derivative assets and liabilities

Other operating, net

(11)

Net cash provided by operating activities

117

Cash Flows from Investing Activities

Cost of additions to land, buildings, equipment and software

(16)

(17)

Acquisitions, net of cash acquired

(54)

Net cash used in investing activities

(70)

(17)

Cash Flows from Financing Activities

Proceeds from issuance of long-term debt

668

Payments on long-term debt

(646)

(95)

Distributions to parent

(174)

(220)

Other financing, net

(2)

(3)

Net cash used in financing activities

(154)

(318)

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

(12)

Decrease in cash, cash equivalents and restricted cash

(148)

(230)

Cash, cash equivalents and restricted cash at beginning of period

1,909

2,691

Cash, Cash Equivalents and Restricted Cash at End of Period

$ 1,761

$ 2,461

[1]

Inventories and Equipment on Operating Leases, Net - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021	Sep. 30, 2021
Inventory [Line Items]
Usage charges in excess of minimum contracted amounts	$ 15	$ 15
Equipment on operating leases, net	254		$ 253
Special Purpose Entity (SPE)
Inventory [Line Items]
Net book value of rights to payments under operating leases sold				$ 9
Equipment on operating leases, net	$ 7		$ 8

Shareholder's Equity of Xerox (Tables)

3 Months Ended

Mar. 31, 2022

Stockholders' Equity Note [Abstract]

Shareholder's Equity of Xerox

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, 2021	$	168	$	1,802	$	(177)	$	5,631	$	(2,988)	$	4,436	$	7	$	4,443

Comprehensive loss, net	—		—		—		(56)		(44)		(100)		(1)		(101)
Cash dividends declared - common(3)	—		—		—		(39)		—		(39)		—		(39)
Cash dividends declared - preferred(4)	—		—		—		(4)		—		(4)		—		(4)


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

Payments to acquire treasury stock, including fees	—		—		(113)		—		—		(113)		—		(113)
Cancellation of treasury stock	(12)		(246)		258		—		—		—		—		—

Distributions to noncontrolling interests	—		—		—		—		—		—		(1)		(1)

Balance at March 31, 2022	$	156	$	1,560	$	(32)	$	5,532	$	(3,032)	$	4,184	$	5	$	4,189


	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

_____________

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

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

(3)Cash dividends declared on common stock for the three months ended March 31, 2022 and 2021 were $0.25 per share, respectively.

(4)Cash dividends declared on preferred stock for the three months ended March 31, 2022 and 2021 were $20.00 per share, respectively.

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, 2021	$	3,202	$	4,476	$	(2,988)	$	4,690	$	7	$	4,697

Comprehensive loss, net	—		(56)		(44)		(100)		(1)		(101)



Dividends declared to parent	—		(549)		—		(549)		—		(549)


Transfers from parent	390		—		—		390		—		390

Distributions to noncontrolling interests	—		—		—		—		(1)		(1)






Balance at March 31, 2022	$	3,592	$	3,871	$	(3,032)	$	4,431	$	5	$	4,436


	Additional Paid-in Capital		Retained Earnings		AOCL(1)		Xerox Shareholder's Equity		Non- controlling Interests		Total Equity
Balance at December 31, 2020	$	4,888	$	5,834	$	(3,332)	$	7,390	$	4	$	7,394

Comprehensive income (loss), net	—		39		(3)		36		—		36



Dividends declared to parent	—		(201)		—		(201)		—		(201)

Intercompany loan capitalization	(1,494)		—		—		(1,494)		—		(1,494)
Transfers to parent	(34)		—		—		(34)		—		(34)


Balance at March 31, 2021	$	3,360	$	5,672	$	(3,335)	$	5,697	$	4	$	5,701

_____________

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

Inventories and Equipment on Operating Leases, Net - Inventories by Major Category (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Inventories and Equipment on Operating Leases, Net [Abstract]
Finished goods	$ 586	$ 568
Work-in-process	42	43
Raw materials	104	85
Total Inventories	$ 732	$ 696

Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2022

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, 2022		December 31, 2021
Derivatives Designated as Hedging Instruments
Foreign exchange contracts - forwards	Other current assets	$	1	$	3
	Accrued expenses and other current liabilities	(19)		(6)


Interest rate cap	Other long-term assets	3		1

	Net designated derivative liabilities	$	(15)	$	(2)

Derivatives NOT Designated as Hedging Instruments
Foreign exchange contracts – forwards	Other current assets	$	3	$	1
	Accrued expenses and other current liabilities	(13)		(5)
	Net undesignated derivative liabilities	$	(10)	$	(4)

Summary of Derivatives	Total Derivative assets	$	7	$	5
	Total Derivative liabilities	(32)		(11)
	Net Derivative liabilities	$	(25)	$	(6)

Summary of Gains (losses) on Derivative Instruments

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


	Three Months Ended March 31,
Loss on Derivative Instruments		2022		2021




Cash Flow Hedges - Foreign Exchange Forward Contracts and Options
Derivative loss recognized in OCI (effective portion)		$	(15)	$	(10)
Derivative loss reclassified from AOCL to income - Cost of sales (effective portion)		(2)		(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 Gain (Loss)	Three Months Ended March 31,
			2022		2021
Foreign exchange contracts – forwards	Other expense – Currency losses, net		$	(9)	$	(18)

Debt

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Debt

Xerox Holdings Corporation / Xerox Corporation Intercompany Loan

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 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, 2022 and December 31, 2021, the balance of the Intercompany Loan reported in Xerox Corporation’s Condensed Consolidated Balance Sheet was $1,495 and $1,494, respectively, which is net of related debt issuance costs, and the intercompany interest payable was $10 and $30, respectively. Xerox Corporation’s interest expense included interest expense associated with this Intercompany Loan of $20 and $20 for the three months ended March 31, 2022 and 2020, respectively.

Credit Facility

In March 2022, Xerox and Xerox Holdings entered into Amendment No. 4 to the Credit Facility. The Amendment, which became effective on March 24, 2022, included the following changes:

(1)reduced the aggregate amount of the revolving credit commitments under the Credit Agreement from $1.8 billion to $1.5 billion; and

(2)modified the financial covenants in the Credit Agreement to now require that, during a specified Covenant Modification Period, which began on January 1, 2022 and ends on the earlier of (a) June 30, 2022 and (b) the date on which Xerox Corp. delivers a written notice to the Administrative Agent electing to end such period:

a.Xerox Corporation maintain unrestricted cash (as defined in the Amendment) at the end of each fiscal quarter in an amount not less than $500.

b.With respect to each fiscal quarter ending during the Covenant Modification Period, Xerox Corporation maintain a ratio of Net Debt for Borrowed Money to consolidated EBITDA of not greater than 4.25x with Net Debt for Borrowed Money including a cash netting with a cap of $1,250 for the quarter ending March 31, 2022 and $1,000 for the quarter ending June 30, 2022. This covenant is in lieu of the 4.25x Net Debt for Borrowed Money to consolidated EBITDA ratio requirement without cash netting applicable prior to the Amendment.

As of March 31, 2022, we were in full compliance with the covenants and other provisions of our Credit Facility.

Secured Borrowings and Collateral

In January 2022, we entered into a secured loan agreement with financial institutions where we sold $789 of U.S. based finance receivables to a special purpose entity (SPE). The purchase by the SPE was funded through a $668 amortizing secured loan to the SPE from the financial institutions. The SPE is fully consolidated in our financial statements. The secured loan was an amendment of the December 2020 secured borrowing, which had a remaining balance of $248, and we received the incremental net cash. The transaction was accounted for as an extinguishment of debt and the issuance of new debt and associated collateral. The new loan has a variable interest rate based on the financial institutions' cost of funds plus a spread (current rate of 1.71% at March 31, 2022) and an expected life of approximately 2.5 years, with half of the loan projected to be repaid within the first year based on collections of the underlying portfolio of receivables.

In September 2021, we entered into a secured loan agreement with a financial institution where we sold $331 of U.S. based finance receivables and the rights to payments under operating leases with an equipment net book value of $9 to a SPE. The purchase by the SPE was funded through a $311 amortizing secured loan to the SPE from the financial institution. The debt has a variable interest rate based on LIBOR plus a spread (current rate of 1.75% at March 31, 2022). In October 2021, we entered into an interest rate hedge agreement to cap LIBOR over the life of the loan.

The sales of the receivables to the SPEs were structured as "true sales at law," and we have received opinions to that effect from outside legal counsel. However, the transactions were accounted for as secured borrowings as we consolidate the SPEs since we have both the power to direct the activities that most significantly impact the SPEs' economic performance through our role as servicer of all the receivables held by the SPEs, and the obligation through variable interests in the SPEs to absorb losses or receive benefits that could potentially be significant to the

SPEs. As a result, the assets of the SPEs are not available to satisfy any of our other obligations. Conversely, the credit holders of these SPEs do not have legal recourse to the Company’s general credit.

Below are the assets and liabilities held by the consolidated SPEs, which are included in our Condensed Consolidated Balance Sheets.


	March 31, 2022		December 31, 2021
Assets held by SPEs
Billed portion of finance receivables, net	$	31	$	27
Finance receivables, net	402		299
Finance receivables due after one year, net	597		362
Equipment on operating leases, net	7		8
Restricted cash(1)	37		32
Total Assets	$	1,074	$	728
Liabilities held by SPEs
Current portion of long-term debt, net(2)	$	451	$	350
Long term debt, net(2)	432		210
Total Liabilities	$	883	$	560

_____________

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

(2)Net of debt issuance costs of $2 and $1 as of March 31, 2022 and December 31, 2021, respectively.

Interest Expense and Income

Interest expense and income were as follows:


	Three Months Ended March 31,
		2022		2021
Interest expense(1)(2)		$	53	$	52
Interest income(3)		54		56

____________

(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 (Loss) Income.

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

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI http://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (g)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1E
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

Revenue - Capitalized Contract Cost (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenue from Contract with Customer [Abstract]
Incremental direct costs of obtaining a contract	$ 13	$ 13
Amortization of incremental direct costs	$ 18	$ 19

Contingencies and Litigation - Loss Contingencies by Contingency (Details) - Brazil Contingencies - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Loss Contingencies [Line Items]
Tax contingency - unreserved	$ 368	$ 292
Escrow cash deposits	39	32
Surety bonds	69	96
Letters of credit	93	74
Liens on Brazilian assets	$ 0	$ 0

Finance Receivables, Net - Summary (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Financing Receivable, Allowance for Credit Loss [Line Items]
Gross receivables	$ 3,490	$ 3,568
Unearned income	(365)	(380)
Total	3,125	3,188
Residual values	0	0
Allowance for doubtful accounts	(120)	(118)	$ (135)	$ (133)
Finance receivables, net	3,005	3,070
Less: Billed portion of finance receivables, net	89	94
Less: Current portion of finance receivables not billed, net	1,023	1,042
Finance receivables due after one year, net	$ 1,893	$ 1,934
Credit Concentration Risk \| Financing Receivable \| U.S., Canada and EMEA
Financing Receivable, Allowance for Credit Loss [Line Items]
Concentration risk (percentage)	3.80%	3.70%

Accounts Receivable, Net

3 Months Ended

Mar. 31, 2022

Receivables [Abstract]

Accounts Receivable, Net

Accounts receivable, net were as follows:


	March 31, 2022		December 31, 2021
Invoiced	$	658	$	660
Accrued(1)	212		216
Allowance for doubtful accounts	(63)		(58)
Accounts receivable, net	$	807	$	818

_____________

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

The allowance for doubtful accounts was as follows:


	2022		2021
Balance at January 1st	$	58	$	69
Provision	9		4
Charge-offs	(3)		(5)
Recoveries and other(1)	(1)		0
Balance at March 31st	$	63	$	68

_____________

(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, $87 and $102 remained uncollected as of March 31, 2022 and December 31, 2021, respectively.

Accounts receivable sales activity was as follows:


	Three Months Ended March 31,
		2022		2021
Accounts receivable sales(1)		$	116	$	107

____________

Finance Receivables, Net

Finance receivables, net were as follows:


	March 31, 2022		December 31, 2021
Gross receivables	$	3,490	$	3,568
Unearned income	(365)		(380)
Subtotal	3,125		3,188
Residual values	—		—
Allowance for doubtful accounts	(120)		(118)
Finance receivables, net	3,005		3,070
Less: Billed portion of finance receivables, net	89		94
Less: Current portion of finance receivables not billed, net	1,023		1,042
Finance receivables due after one year, net	$	1,893	$	1,934

Finance Receivables – Allowance for Credit Losses and Credit Quality

economies, the risk profile within that portfolio segment is somewhat more diversified due to the varying economic conditions among and within the countries.

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, 2021	$	77	$	11	$	30	$	118
Provision	3		—		3		6
Charge-offs	(2)		(1)		(1)		(4)
Recoveries and other(2)	—		1		(1)		—
Balance at March 31, 2022	$	78	$	11	$	31	$	120









Finance receivables as of March 31, 2022 collectively evaluated for impairment (3)	$	1,863	$	246	$	1,016	$	3,125

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

_____________

(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 $120 and $135 at March 31, 2022 and 2021, 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, 2022
	2022		2021		2020		2019		2018		Prior		Total Finance Receivables
United States (Direct)
Low Credit Risk	$	43	$	128	$	110	$	85	$	54	$	15	$	435
Average Credit Risk	24		47		39		52		20		7		189
High Credit Risk	12		86		66		27		12		5		208
Total	$	79	$	261	$	215	$	164	$	86	$	27	$	832

United States (Indirect)
Low Credit Risk	$	66	$	205	$	124	$	83	$	30	$	7	$	515
Average Credit Risk	55		200		99		69		31		6		460
High Credit Risk	8		24		14		6		3		1		56
Total	$	129	$	429	$	237	$	158	$	64	$	14	$	1,031

Canada
Low Credit Risk	$	5	$	30	$	26	$	20	$	11	$	3	$	95
Average Credit Risk	8		33		32		25		13		5		116
High Credit Risk	1		8		12		6		5		3		35
Total	$	14	$	71	$	70	$	51	$	29	$	11	$	246

EMEA(1)
Low Credit Risk	$	107	$	190	$	120	$	90	$	49	$	11	$	567
Average Credit Risk	76		126		86		69		30		8		395
High Credit Risk	9		15		13		11		5		1		54
Total	$	192	$	331	$	219	$	170	$	84	$	20	$	1,016







Total Finance Receivables
Low Credit Risk	$	221	$	553	$	380	$	278	$	144	$	36	$	1,612
Average Credit Risk	163		406		256		215		94		26		1,160
High Credit Risk	30		133		105		50		25		10		353
Total	$	414	$	1,092	$	741	$	543	$	263	$	72	$	3,125


	December 31, 2021
	2021		2020		2019		2018		2017		Prior		Total Finance Receivables
United States (Direct)
Low Credit Risk	$	148	$	121	$	98	$	68	$	21	$	3	$	459
Average Credit Risk	60		40		57		23		8		2		190
High Credit Risk	91		73		31		16		6		1		218
Total	$	299	$	234	$	186	$	107	$	35	$	6	$	867

United States (Indirect)
Low Credit Risk	$	235	$	145	$	100	$	43	$	11	$	—	$	534
Average Credit Risk	201		103		74		35		10		—		423
High Credit Risk	24		15		8		4		1		—		52
Total	$	460	$	263	$	182	$	82	$	22	$	—	$	1,009

Canada
Low Credit Risk	$	32	$	27	$	22	$	13	$	3	$	1	$	98
Average Credit Risk	34		34		27		15		6		1		117
High Credit Risk	8		12		7		5		4		—		36
Total	$	74	$	73	$	56	$	33	$	13	$	2	$	251

EMEA(1)
Low Credit Risk	$	229	$	143	$	121	$	71	$	22	$	6	$	592
Average Credit Risk	156		109		84		45		15		3		412
High Credit Risk	18		15		13		8		3		—		57
Total	$	403	$	267	$	218	$	124	$	40	$	9	$	1,061







Total Finance Receivables
Low Credit Risk	$	644	$	436	$	341	$	195	$	57	$	10	$	1,683
Average Credit Risk	451		286		242		118		39		6		1,142
High Credit Risk	141		115		59		33		14		1		363
Total	$	1,236	$	837	$	642	$	346	$	110	$	17	$	3,188

_____________

(1)Includes developing market countries.

The aging of our billed finance receivables is as follows:


	March 31, 2022
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Direct	$	26	$	6	$	7	$	39	$	793	$	832	$	50
Indirect	23		6		4		33		998		1,031		—






Total United States	49		12		11		72		1,791		1,863		50
Canada	6		2		—		8		238		246		10





EMEA(1)	8		2		1		11		1,005		1,016		9

Total	$	63	$	16	$	12	$	91	$	3,034	$	3,125	$	69

	December 31, 2021
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Direct	$	28	$	7	$	7	$	42	$	825	$	867	$	61
Indirect	28		5		4		37		972		1,009		—






Total United States	56		12		11		79		1,797		1,876		61
Canada	6		1		—		7		244		251		9





EMEA(1)	9		2		1		12		1,049		1,061		13

Total	$	71	$	15	$	12	$	98	$	3,090	$	3,188	$	83

_____________

(1)Includes developing market countries

Secured Borrowings and Collateral

Refer to Note 13 - Debt, for additional information related to these arrangements.

Other Comprehensive (Loss) Income

3 Months Ended

Mar. 31, 2022

Equity [Abstract]

Other Comprehensive (Loss) Income

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


	Three Months Ended March 31,
		2022	2021
			Pre-tax		Net of Tax		Pre-tax		Net of Tax
Translation Adjustments Losses			$	(71)	$	(72)	$	(52)	$	(51)
Unrealized (Losses) Gains
Changes in fair value of cash flow hedges losses			(15)		(13)		(10)		(8)
Changes in cash flow hedges reclassed to earnings(1)			2		2		1		1

Net Unrealized Losses			(13)		(11)		(9)		(7)

Defined Benefit Plans Gains (Losses)
Net actuarial/prior service gains			16		12		43		32
Prior service amortization(2)			(4)		(3)		(17)		(12)
Actuarial loss amortization/settlement(2)			28		21		35		26

Other gains(3)			9		9		9		9
Changes in Defined Benefit Plans Gains			49		39		70		55



Other Comprehensive (Loss) Income Attributable to Xerox Holdings/Xerox			$	(35)	$	(44)	$	9	$	(3)

____________

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

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

(3)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, 2022		December 31, 2021
Cumulative translation adjustments	$	(1,933)	$	(1,861)
Other unrealized losses, net	(13)		(2)
Benefit plans net actuarial losses and prior service credits	(1,086)		(1,125)
Total Accumulated Other Comprehensive Loss Attributable to Xerox Holdings/Xerox	$	(3,032)	$	(2,988)

Inventories and Equipment on Operating Leases, Net (Tables)

3 Months Ended

Mar. 31, 2022

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, 2022		December 31, 2021
Finished goods	$	586	$	568
Work-in-process	42		43
Raw materials	104		85
Total Inventories	$	732	$	696

Schedule of Equipment on Operating Leases and Related Accumulated Depreciation

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


	March 31, 2022		December 31, 2021
Equipment on operating leases	$	1,256	$	1,266
Accumulated depreciation	(1,002)		(1,013)
Equipment on operating leases, net	$	254	$	253

(Loss) Earnings per Share (Tables)

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Earnings Per Share

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


	Three Months Ended March 31,
		2022		2021
Basic (Loss) Earnings per Share
Net (Loss) Income Attributable to Xerox Holdings		$	(56)	$	39
Accrued dividends on preferred stock		(4)		(4)


Adjusted Net (loss) income available to common shareholders		$	(60)	$	35

Weighted average common shares outstanding		156,362		195,985




Basic (Loss) Earnings per Share		$	(0.38)	$	0.18

Diluted (Loss) Earnings per Share
Net (Loss) Income Attributable to Xerox Holdings		$	(56)	$	39
Accrued dividends on preferred stock		(4)		(4)


Adjusted Net (loss) income available to common shareholders		$	(60)	$	35

Weighted average common shares outstanding		156,362		195,985
Common shares issuable with respect to:
Stock options		—		—
Restricted stock and performance shares		—		2,181
Convertible preferred stock		—		—

Adjusted weighted average common shares outstanding		156,362		198,166




Diluted (Loss) Earnings per Share		$	(0.38)	$	0.18

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		612		693
Restricted stock and performance shares		6,470		5,327
Convertible preferred stock		6,742		6,742
Total Anti-Dilutive Securities		13,824		12,762

Dividends per Common Share		$	0.25	$	0.25

Supplementary Financial Information - Statements of (Loss) Income (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Restricted Cash and Cash Equivalents Items [Line Items]
Selling, administrative and general expenses	$ 455	$ 448
Total Costs and Expenses	1,757	1,657
COVID-19 Pandemic, Aid And Economic Stimulus Savings
Restricted Cash and Cash Equivalents Items [Line Items]
Cost of services, maintenance and rentals	0	7
Selling, administrative and general expenses	0	3
Total Costs and Expenses	$ 0	$ 10

Financial Instruments - Gains (losses) on Derivative Instruments (Details) - Foreign exchange contracts - forwards - Cash Flow Hedges - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Summary of Derivative Instruments Gains (Losses) [Abstract]
Derivative loss recognized in OCI (effective portion)	$ (15)	$ (10)
Cost of Sales
Summary of Derivative Instruments Gains (Losses) [Abstract]
Derivative loss reclassified from AOCL to income - Cost of sales (effective portion)	$ (2)	$ (1)

Lessee - Components of Lease Expense (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Leases [Abstract]
Operating lease expense	$ 25	$ 27
Short-term lease expense	4	5
Variable lease expense	12	12
Sublease income	(2)	(1)
Total Lease expense	$ 39	$ 43

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

3 Months Ended

Mar. 31, 2022

Mar. 31, 2021

Components of Net Periodic Benefit Costs:

Defined benefit plans

^[1]

$ (7)

$ (20)

Pension Benefits | U.S. Plans

Components of Net Periodic Benefit Costs:

Service cost

Interest cost

Expected return on plan assets

(27)

(28)

Recognized net actuarial loss

Amortization of prior service credit

Recognized settlement loss

Defined benefit plans

Defined contribution plans

Net Periodic Benefit Cost (Credit)

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income:

Net actuarial loss (gain)

(44)

Prior service credit

Amortization of net actuarial loss

(22)

(20)

Amortization of net prior service credit

Total recognized in other comprehensive (loss) income

(8)

(64)

Total Recognized in Net Periodic Benefit Cost (Credit) and Other Comprehensive (Loss) Income

(54)

Pension Benefits | Non-U.S. Plans

Components of Net Periodic Benefit Costs:

Service cost

Interest cost

Expected return on plan assets

(55)

(52)

Recognized net actuarial loss

Amortization of prior service credit

Recognized settlement loss

Defined benefit plans

(16)

(10)

Defined contribution plans

Net Periodic Benefit Cost (Credit)

(12)

(5)

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income:

Net actuarial loss (gain)

Prior service credit

Amortization of net actuarial loss

(6)

(15)

Amortization of net prior service credit

Total recognized in other comprehensive (loss) income

(6)

(14)

Total Recognized in Net Periodic Benefit Cost (Credit) and Other Comprehensive (Loss) Income

(18)

(19)

Retiree Health

Components of Net Periodic Benefit Costs:

Service cost

Interest cost

Expected return on plan assets

Recognized net actuarial loss

Amortization of prior service credit

(4)

(17)

Recognized settlement loss

Defined benefit plans

(2)

(14)

Net Periodic Benefit Cost (Credit)

(2)

(14)

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income:

Net actuarial loss (gain)

(7)

Prior service credit

(23)

Amortization of net actuarial loss

Amortization of net prior service credit

Total recognized in other comprehensive (loss) income

(26)

Total Recognized in Net Periodic Benefit Cost (Credit) and Other Comprehensive (Loss) Income

$ (28)

$ 3

[1]

Lessee - Operating Lease ROU Asset- Operating Leases Assets and Liabilities (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Leases [Abstract]
Operating lease, right-of-use asset, statement of financial position [extensible list]	Other long-term assets	Other long-term assets
Operating lease, other long-term assets	$ 252	$ 264
Operating lease, liability, current, statement of financial position [extensible list]	Accrued expenses and other current liabilities	Accrued expenses and other current liabilities
Operating lease, accrued expenses and other current liabilities	$ 79	$ 79
Operating lease, liability, noncurrent, statement of financial position [extensible list]	Other long-term liabilities	Other long-term liabilities
Operating lease, other long-term liabilities	$ 191	$ 204
Total Operating lease liabilities	$ 270	$ 283

Financial Instruments - Additional Information (Details)	3 Months Ended
	Mar. 31, 2022 USD ($) contract	Mar. 31, 2021 USD ($)	Dec. 31, 2021 USD ($)
Derivative [Line Items]
Number of interest rate cap contracts outstanding \| contract	1
Notional amount	$ 1,126,000,000		$ 1,113,000,000
Average maturity of foreign exchange hedging contract - within three months (as a percent of total contracts)	77.00%
Average maturity of foreign exchange hedging contract - within three and six months (as a percent of total contracts)	13.00%
Average maturity of foreign exchange hedging contract - within six and twelve months (as a percent of total contracts)	10.00%
Derivative liabilities, at fair value, net	$ 25,000,000		6,000,000
After-tax loss, net	13,000,000
Foreign currency transaction losses, before tax	0	$ 2,000,000
Derivatives Designated as Hedging Instruments
Derivative [Line Items]
Derivative liabilities, at fair value, net	15,000,000		2,000,000
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]
Derivative liabilities, at fair value, net	$ (18,000,000)		$ (3,000,000)

Revenue - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
Revenue - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Revenue, Contract Assets, Liabilities and Costs[Line Items]
Contract liabilities	$ 138		$ 144
Contract liability amortization period (months)	30 months
Deferred incremental direct costs, amortization period (years)	4 years
Deferred incremental direct costs net of accumulated amortization	$ 128		132
Contract Fulfillment Costs and Inducements
Revenue, Contract Assets, Liabilities and Costs[Line Items]
Capitalized contract costs, amounts deferred	14		$ 15
Capitalized contract costs, amortization	$ 1	$ 1

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Cash and cash equivalents	$ 1,681	$ 1,840
Accounts receivable (net of allowance)	807	818
Billed portion of finance receivables, net	89	94
Finance receivables, net	1,023	1,042
Inventories	732	696
Other current assets	234	211
Total current assets	4,566	4,701
Finance receivables due after one year, net	1,893	1,934
Equipment on operating leases, net	254	253
Land, buildings and equipment, net	350	358
Intangible assets, net	240	211
Goodwill	3,300	3,287
Deferred tax assets	528	519
Other long-term assets	1,939	1,952
Total Assets	13,070	13,215
Short-term debt and current portion of long-term debt	1,450	650
Accounts payable	1,183	1,069
Accrued compensation and benefits costs	258	239
Accrued expenses and other current liabilities	833	823
Total current liabilities	3,724	2,781
Long-term debt	1,326	2,102
Related party debt	1,495	1,494
Pension and other benefit liabilities	1,359	1,373
Post-retirement medical benefits	247	277
Other long-term liabilities	473	481
Total Liabilities	8,624	8,508
Commitments and Contingencies (See Note 21)
Noncontrolling Interests	10	10
Additional paid-in capital	3,592	3,202
Retained earnings	3,871	4,476
Accumulated other comprehensive loss	(3,032)	(2,988)
Xerox Holdings shareholders’ equity	4,431	4,690
Noncontrolling interests	5	7
Total Equity	4,436	4,697
Total Liabilities and Equity	$ 13,070	$ 13,215

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) shares in Thousands, $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Assets
Cash and cash equivalents	$ 1,681	$ 1,840
Accounts receivable (net of allowance)	807	818
Billed portion of finance receivables, net	89	94
Finance receivables, net	1,023	1,042
Inventories	732	696
Other current assets	234	211
Total current assets	4,566	4,701
Finance receivables due after one year (net of allowance)	1,893	1,934
Equipment on operating leases, net	254	253
Land, buildings and equipment, net	350	358
Intangible assets, net	240	211
Goodwill	3,300	3,287
Deferred tax assets	528	519
Other long-term assets	1,939	1,952
Total Assets	13,070	13,215
Liabilities and Equity
Short-term debt and current portion of long-term debt	1,450	650
Accounts payable	1,183	1,069
Accrued compensation and benefits costs	258	239
Accrued expenses and other current liabilities	833	823
Total current liabilities	3,724	2,781
Long-term debt	1,326	2,102
Pension and other benefit liabilities	1,359	1,373
Post-retirement medical benefits	247	277
Other long-term liabilities	473	481
Total Liabilities	8,624	8,508
Commitments and Contingencies (See Note 21)
Noncontrolling Interests	10	10
Convertible Preferred Stock	214	214
Common stock	156	168
Additional paid-in capital	3,592	3,202
Treasury stock, at cost	(32)	(177)
Retained earnings	3,871	4,476
Accumulated other comprehensive loss	(3,032)	(2,988)
Xerox Holdings shareholders’ equity	4,431	4,690
Noncontrolling interests	5	7
Total Equity	4,436	4,697
Total Liabilities and Equity	$ 13,070	$ 13,215
Shares of common stock issued (in shares)	156,358	168,069
Treasury stock (in shares)	(1,508)	(8,675)
Shares of common stock outstanding (in shares)	154,850	159,394

Inventories and Equipment on Operating Leases, Net

3 Months Ended

Mar. 31, 2022

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, 2022		December 31, 2021
Finished goods	$	586	$	568
Work-in-process	42		43
Raw materials	104		85
Total Inventories	$	732	$	696

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, 2022		December 31, 2021
Equipment on operating leases	$	1,256	$	1,266
Accumulated depreciation	(1,002)		(1,013)
Equipment on operating leases, net	$	254	$	253

Total contingent rentals on operating leases, consisting principally of usage charges in excess of minimum contracted amounts, were $15 and $15 for the three months ended March 31, 2022 and 2021, respectively.

Secured Borrowings and Collateral

In September 2021, we sold the rights to payments under operating leases with an equipment net book value of $9 to a consolidated SPE. The SPE held Equipment on operating leases, net of $7 and $8 as of March 31, 2022 and December 31, 2021, respectively, which are included in our Condensed Consolidated Balance Sheets as collateral for the secured loan agreement.

Refer to Note 13 - Debt, for additional information related to this arrangement.

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2022
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Pension In April 2022, our U.K. defined benefit pension plan was amended, at the sole discretion of the Plan Trustees as legally allowed, to increase the capped inflation indexation for the April 2022 pension increase award to 7.5% in line with the December 2021 UK Retail Price Index (RPI). This plan amendment is expected to result in an increase of approximately $53 (GBP 40 million) in the projected benefit obligation (PBO) for this plan (approximately 1.4% of the plan PBO as of December 31, 2021). However, at this stage, we are still evaluating the full impact of this amendment including the associated impacts from the required remeasurement of the plan assets and obligations for updates to discount rates, actual returns and actuarial experience as of the effective date of the amendment. Refer to Note 19 - Employee Benefit Plans in the Consolidated Financial Statements included in the 2021 Annual Report for additional information regarding our U.K. defined benefit pension plan including its funding status as of December 31, 2021. Secured Borrowing In April 2022, we entered into a secured loan agreement with a financial institution where we sold $94 (119 million CAD) of finance receivables of our Canadian subsidiary to a special purpose entity (SPE). The purchase by the SPE was funded through an $85 (108 million CAD) amortizing secured loan to the SPE from the financial institution. The transaction was accounted for as a secured borrowing and the SPE is fully consolidated in our financial statements. As a result, the assets of the SPE are not available to satisfy any of our other obligations. Conversely, the credit holder of this SPE does not have legal recourse to the Company’s general credit. The loan has a variable interest rate that was swapped to a fixed interest rate of 3.32% and it has an expected life of less than 3 years, with half of the loan projected to be repaid within the first year based on collections of the underlying portfolio of receivables.

Lessor (Tables)

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Schedule of Components of Lease Income

The components of lease income are as follows:


		Three Months Ended March 31,
	Location in Statements of (Loss) Income		2022		2021
Revenue from sales type leases	Sales		$	135	$	147


Interest income on lease receivables	Financing		53		55


Lease income - operating leases	Services, maintenance and rentals		48		67
Variable lease income	Services, maintenance and rentals		15		15
Total Lease income			$	251	$	284

Schedule of Components of Lease Income

The components of lease income are as follows:


		Three Months Ended March 31,
	Location in Statements of (Loss) Income		2022		2021
Revenue from sales type leases	Sales		$	135	$	147


Interest income on lease receivables	Financing		53		55


Lease income - operating leases	Services, maintenance and rentals		48		67
Variable lease income	Services, maintenance and rentals		15		15
Total Lease income			$	251	$	284

Schedule of Components of Lease Income

The components of lease income are as follows:


		Three Months Ended March 31,
	Location in Statements of (Loss) Income		2022		2021
Revenue from sales type leases	Sales		$	135	$	147


Interest income on lease receivables	Financing		53		55


Lease income - operating leases	Services, maintenance and rentals		48		67
Variable lease income	Services, maintenance and rentals		15		15
Total Lease income			$	251	$	284

Financial Instruments - Derivatives Not Designated as Hedging Instruments Gains (Losses) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Foreign exchange contracts - forwards \| Other expense – Currency losses, net \| Derivatives NOT Designated as Hedging Instruments
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on non-designated derivative instruments	$ (9)	$ (18)

Restructuring Programs - Additional Information (Details) $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($) employee	Mar. 31, 2021 USD ($)	Dec. 31, 2021 USD ($)
Restructuring Cost and Reserve [Line Items]
Net restructuring and asset impairment charges	$ 20
Restructuring charges	$ 23
Headcount reductions, number of employees \| employee	450
Reversals	$ 3
Payments for restructuring	7	$ 27
Restructuring related reserve	15		$ 18
HCL Technologies
Restructuring Cost and Reserve [Line Items]
Payments for restructuring	1	$ 3
Severance and Related Costs
Restructuring Cost and Reserve [Line Items]
Net restructuring and asset impairment charges	19
Restructuring charges	22
Reversals	3
Asset Impairments
Restructuring Cost and Reserve [Line Items]
Net restructuring and asset impairment charges	1
Restructuring charges	1
Reversals	$ 0

Lessee (Tables)

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Schedule of Components of Lease Expense

The components of lease expense are as follows:


	Three Months Ended March 31,
		2022		2021
Operating lease expense		$	25	$	27
Short-term lease expense		4		5
Variable lease expense(1)		12		12
Sublease income		(2)		(1)

Total Lease expense		$	39	$	43

_____________

(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, 2022		December 31, 2021
Other long-term assets	$	252	$	264

Accrued expenses and other current liabilities	$	79	$	79
Other long-term liabilities	191		204
Total Operating lease liabilities	$	270	$	283

Finance Receivables, Net - Aging of Billed Finance Receivables (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Financing Receivable, Past Due [Line Items]
Total	$ 3,125	$ 3,188
Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	91	98
Unbilled Revenues
Financing Receivable, Past Due [Line Items]
Total	3,034	3,090
United States
Financing Receivable, Past Due [Line Items]
Total	1,863	1,876
United States \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	72	79
United States \| Unbilled Revenues
Financing Receivable, Past Due [Line Items]
Total	1,791	1,797
Canada
Financing Receivable, Past Due [Line Items]
Total	246	251
Canada \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	8	7
Canada \| Unbilled Revenues
Financing Receivable, Past Due [Line Items]
Total	238	244
EMEA
Financing Receivable, Past Due [Line Items]
Total	1,016	1,061
EMEA \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	11	12
EMEA \| Unbilled Revenues
Financing Receivable, Past Due [Line Items]
Total	1,005	1,049
Current \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	63	71
Current \| United States \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	49	56
Current \| Canada \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	6	6
Current \| EMEA \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	8	9
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	12	12
31-90 Days Past Due \| Canada \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	2	1
31-90 Days Past Due \| EMEA \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	2	2
>90 Days Past Due \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	12	12
>90 Days Past Due \| United States \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	11	11
>90 Days Past Due \| Canada \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	0	0
>90 Days Past Due \| EMEA \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	1	1
>90 Days and Accruing
Financing Receivable, Past Due [Line Items]
Financing receivable, 90 days or more past due, still accruing	69	83
>90 Days and Accruing \| United States
Financing Receivable, Past Due [Line Items]
Financing receivable, 90 days or more past due, still accruing	50	61
>90 Days and Accruing \| Canada
Financing Receivable, Past Due [Line Items]
Financing receivable, 90 days or more past due, still accruing	10	9
>90 Days and Accruing \| EMEA
Financing Receivable, Past Due [Line Items]
Financing receivable, 90 days or more past due, still accruing	9	13
Direct
Financing Receivable, Past Due [Line Items]
Total	832	867
Direct \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	39	42
Direct \| Unbilled Revenues
Financing Receivable, Past Due [Line Items]
Total	793	825
Direct \| Current \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	26	28
Direct \| 31-90 Days Past Due \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	6	7
Direct \| >90 Days Past Due \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	7	7
Direct \| >90 Days and Accruing
Financing Receivable, Past Due [Line Items]
Financing receivable, 90 days or more past due, still accruing	50	61
Indirect
Financing Receivable, Past Due [Line Items]
Total	1,031	1,009
Indirect \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	33	37
Indirect \| Unbilled Revenues
Financing Receivable, Past Due [Line Items]
Total	998	972
Indirect \| Current \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	23	28
Indirect \| 31-90 Days Past Due \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	6	5
Indirect \| >90 Days Past Due \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	4	4
Indirect \| >90 Days and Accruing
Financing Receivable, Past Due [Line Items]
Financing receivable, 90 days or more past due, still accruing	$ 0	$ 0

Contingencies and Litigation (Tables)

3 Months Ended

Mar. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Schedule of Loss Contingencies by Contingency

Below is a summary of our Brazilian tax contingencies:


	March 31, 2022		December 31, 2021
Tax contingency - unreserved	$	368	$	292
Escrow cash deposits	39		32
Surety bonds	69		96
Letters of credit	93		74
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=124440162&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=124440162&loc=d3e12053-110248

+ Details

Supplementary Financial Information - Cash Flow Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Supplemental Financial Information [Abstract]
Provision for receivables	$ 14	$ 11
Provision for inventory	5	9
Provision for product warranties	1	2
Depreciation of buildings and equipment	18	19
Depreciation and obsolescence of equipment on operating leases	32	42
Amortization of internal use software	11	10
Amortization of acquired intangible assets	11	15
Amortization of customer contract costs	19	20
Cost of additions to land, buildings and equipment	12	8
Cost of additions to internal use software	4	9
Common stock dividends - Xerox Holdings	42	50
Preferred stock dividends - Xerox Holdings	4	4
Payments to noncontrolling interests	1	0
Repurchases related to stock-based compensation - Xerox Holdings	$ 10	$ 4

Restructuring Programs -Reconciliation to The Consolidated Statements of Cash Flows (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Restructuring and Related Activities [Abstract]
Charges against reserve and currency	$ (8)	$ (40)
Asset impairments	1	0
Effects of foreign currency and other non-cash items	0	13
Restructuring cash payments	$ (7)	$ (27)

Supplementary Financial Information (Tables)

3 Months Ended

Mar. 31, 2022

Supplemental Financial Information [Abstract]

Schedule of Statement Loss Income Information

Estimated savings from these various government assistance programs are recorded as follows in the Condensed Consolidated Statements of (Loss) Income:


	Three Months Ended March 31,
		2022		2021

Cost of services, maintenance and rentals		$	—	$	7

Selling, administrative and general expenses		—		3
Total Estimated savings		$	—	$	10

Schedule of Restricted Cash

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


	March 31, 2022		December 31, 2021
Cash and cash equivalents	$	1,681	$	1,840
Restricted cash
Litigation deposits in Brazil	42		34
Escrow and cash collections related to secured borrowing arrangements(1)	37		32
Other restricted cash	1		3
Total Restricted cash	80		69
Cash, cash equivalents and restricted cash	$	1,761	$	1,909

_____________

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

Schedule of Restricted Cash Balance Sheet Location

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


	March 31, 2022		December 31, 2021
Other current assets	$	38	$	33
Other long-term assets	42		36
Total Restricted cash	$	80	$	69

Summarized Cash Flow Information

Summarized cash flow information is as follows:


	Three Months Ended March 31,
		2022		2021
Provision for receivables		$	14	$	11
Provision for inventory		5		9
Provision for product warranties		1		2
Depreciation of buildings and equipment		18		19
Depreciation and obsolescence of equipment on operating leases		32		42
Amortization of internal use software		11		10

Amortization of acquired intangible assets		11		15
Amortization of customer contract costs(1)		19		20
Cost of additions to land, buildings and equipment		12		8
Cost of additions to internal use software		4		9
Common stock dividends - Xerox Holdings		42		50
Preferred stock dividends - Xerox Holdings		4		4


Payments to noncontrolling interests		1		—
Repurchases related to stock-based compensation - Xerox Holdings		10		4

_____________

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (UNAUDITED) - USD ($)
$ in Millions

3 Months Ended

Mar. 31, 2022

Mar. 31, 2021

Net (Loss) Income

$ (57)

$ 39

Less: Net loss attributable to noncontrolling interests

(1)

Net (Loss) Income Attributable to Xerox Holdings

(56)

Other Comprehensive (Loss) Income , Net

Translation adjustments, net

^[1]

(72)

(51)

Unrealized losses, net

^[1]

(11)

(7)

Changes in defined benefit plans, net

^[1]

Other Comprehensive Loss, Net Attributable to Xerox Holdings

^[1]

(44)

(3)

Comprehensive (Loss) Income, Net

Comprehensive (Loss) Income, Net

(101)

Less: Comprehensive loss, net attributable to noncontrolling interests

(1)

Comprehensive (Loss) Income, Net Attributable to Xerox Holdings

$ (100)

$ 36

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

Segment Reporting - Reportable Segments (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Segment Reporting, Asset Reconciling Item [Line Items]
Total Pre-tax (loss) income	$ (89)	$ 53
Restructuring and related costs, net	(18)	(17)
Amortization of intangible assets	(11)	(15)
Other expenses, net	57	4
Depreciation and amortization	72	86
Amortization of intangible assets	11	15
Total Interest expense	53	52
Interest income	54	56
Operating Segments
Segment Reporting, Asset Reconciling Item [Line Items]
Total Pre-tax (loss) income	(3)	89
Depreciation and amortization	61	71
Total Interest expense	26	30
Interest income	53	55
Corporate
Segment Reporting, Asset Reconciling Item [Line Items]
Total Interest expense	27	22
Interest income	$ 1	$ 1

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Accounts receivable, allowance for credit loss, current	$ 63	$ 58
Billed portion of finance receivables, net	3	4
Finance receivables, allowance for credit loss, noncurrent	$ 117	$ 114

Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Schedule of Segment Reporting Information

Selected financial information for our reportable segments was as follows:


	Three Months Ended March 31,
	2022									2021
	Print and Other			Financing (FITTLE)			Total			Print and Other			Financing (FITTLE)			Total
External net revenue	$	1,513		$	155		$	1,668		$	1,533		$	177		$	1,710
Intersegment net revenue(1)	37			3			40			48			3			51
Total Segment net revenue	$	1,550		$	158		$	1,708		$	1,581		$	180		$	1,761

Segment (loss) profit	$	(20)		$	17		$	(3)		$	71		$	18		$	89
Segment margin(2)	(1.3)		%	11.0		%	(0.2)		%	4.6		%	10.2		%	5.2		%

Depreciation and amortization	$	29		$	32		$	61		$	29		$	42		$	71


Interest income	—			53			53			—			55			55
Interest expense(3)	—			26			26			—			30			30

_____________

(1)Intersegment net revenue is primarily commissions and other payments made by the Financing Segment to the Print and Other Segment for the lease of Xerox Equipment placements.

(2)Segment margin based on External net revenue only.

Selected financial information for our reportable segments was as follows:


	Three Months Ended March 31,
		2022		2021





Pre-tax (Loss) Income
Total reported segments		$	(3)	$	89
Restructuring and related costs, net		(18)		(17)
Amortization of intangible assets		(11)		(15)
Other expenses, net		(57)		(4)
Total Pre-tax (loss) income		$	(89)	$	53

Depreciation and Amortization
Total reported segments		$	61	$	71
Amortization of intangible assets		11		15
Total Depreciation and amortization		$	72	$	86

Interest Expense
Total reported segments		$	26	$	30
Corporate		27		22
Total Interest expense		$	53	$	52

Interest Income
Total reported segments		$	53	$	55
Corporate		1		1
Total Interest income		$	54	$	56

Acquisitions and Investments (Details) $ in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($)	Mar. 31, 2022 CAD ($)	Mar. 31, 2022 CAD ($)	Dec. 31, 2021 USD ($)
Business Acquisition [Line Items]
Goodwill	$ 3,300			$ 3,287
Powerland
Business Acquisition [Line Items]
Acquisition	54	$ 69
Contingent consideration	$ 22		$ 28
Contingent consideration, term	2 years	2 years
Series of Individually Immaterial Business Acquisitions
Business Acquisition [Line Items]
Percentage of ownership acquired	100.00%		100.00%
Intangible assets, net	$ 40
Goodwill	$ 41

Shareholder's Equity of Xerox

3 Months Ended

Mar. 31, 2022

Stockholders' Equity Note [Abstract]

Shareholder's 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, 2021	$	168	$	1,802	$	(177)	$	5,631	$	(2,988)	$	4,436	$	7	$	4,443

Comprehensive loss, net	—		—		—		(56)		(44)		(100)		(1)		(101)
Cash dividends declared - common(3)	—		—		—		(39)		—		(39)		—		(39)
Cash dividends declared - preferred(4)	—		—		—		(4)		—		(4)		—		(4)


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

Payments to acquire treasury stock, including fees	—		—		(113)		—		—		(113)		—		(113)
Cancellation of treasury stock	(12)		(246)		258		—		—		—		—		—

Distributions to noncontrolling interests	—		—		—		—		—		—		(1)		(1)

Balance at March 31, 2022	$	156	$	1,560	$	(32)	$	5,532	$	(3,032)	$	4,184	$	5	$	4,189


	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

_____________

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

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

(3)Cash dividends declared on common stock for the three months ended March 31, 2022 and 2021 were $0.25 per share, respectively.

(4)Cash dividends declared on preferred stock for the three months ended March 31, 2022 and 2021 were $20.00 per share, respectively.

Common Stock and Treasury Stock

The following is a summary of the changes in Common and Treasury stock shares:


	Common Stock Shares	Treasury Stock Shares
Balance at December 31, 2021	168,069	8,675
Stock based compensation plans, net	630	—
Acquisition of Treasury stock	—	5,174
Cancellation of Treasury stock	(12,341)	(12,341)
Balance at March 31, 2022	156,358	1,508

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, 2021	$	3,202	$	4,476	$	(2,988)	$	4,690	$	7	$	4,697

Comprehensive loss, net	—		(56)		(44)		(100)		(1)		(101)



Dividends declared to parent	—		(549)		—		(549)		—		(549)


Transfers from parent	390		—		—		390		—		390

Distributions to noncontrolling interests	—		—		—		—		(1)		(1)






Balance at March 31, 2022	$	3,592	$	3,871	$	(3,032)	$	4,431	$	5	$	4,436


	Additional Paid-in Capital		Retained Earnings		AOCL(1)		Xerox Shareholder's Equity		Non- controlling Interests		Total Equity
Balance at December 31, 2020	$	4,888	$	5,834	$	(3,332)	$	7,390	$	4	$	7,394

Comprehensive income (loss), net	—		39		(3)		36		—		36



Dividends declared to parent	—		(201)		—		(201)		—		(201)

Intercompany loan capitalization	(1,494)		—		—		(1,494)		—		(1,494)
Transfers to parent	(34)		—		—		(34)		—		(34)


Balance at March 31, 2021	$	3,360	$	5,672	$	(3,335)	$	5,697	$	4	$	5,701

_____________

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

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496171-112644

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496171-112644

Reference 5: 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 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496189-112644

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (g)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-URI http://asc.fasb.org/topic&trid=2208762

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496189-112644

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (h)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496171-112644

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496189-112644

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 16
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496180-112644

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Shareholder's Equity of Xerox (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Increase (Decrease) in Stockholder's Equity [Roll Forward]
Balance at beginning of period	$ 4,697	$ 7,394
Comprehensive income (loss), net	(101)	36
Dividends declared to parent	(549)	(201)
Intercompany loan capitalization		(1,494)
Transfers from parent	390
Transfers to parent		(34)
Distributions to noncontrolling interests	(1)
Balance at end of period	4,436	5,701
Xerox Holdings/Xerox Shareholders’ Equity
Increase (Decrease) in Stockholder's Equity [Roll Forward]
Balance at beginning of period	4,690	7,390
Comprehensive income (loss), net	(100)	36
Dividends declared to parent	(549)	(201)
Intercompany loan capitalization		(1,494)
Transfers from parent	390
Transfers to parent		(34)
Balance at end of period	4,431	5,697
Additional Paid-in Capital
Increase (Decrease) in Stockholder's Equity [Roll Forward]
Balance at beginning of period	3,202	4,888
Intercompany loan capitalization		(1,494)
Transfers from parent	390
Transfers to parent		(34)
Balance at end of period	3,592	3,360
Retained Earnings
Increase (Decrease) in Stockholder's Equity [Roll Forward]
Balance at beginning of period	4,476	5,834
Comprehensive income (loss), net	(56)	39
Dividends declared to parent	(549)	(201)
Balance at end of period	3,871	5,672
AOCL
Increase (Decrease) in Stockholder's Equity [Roll Forward]
Balance at beginning of period	(2,988)	(3,332)
Comprehensive income (loss), net	(44)	(3)
Balance at end of period	(3,032)	(3,335)
Non-controlling Interests
Increase (Decrease) in Stockholder's Equity [Roll Forward]
Balance at beginning of period	7	4
Comprehensive income (loss), net	(1)
Distributions to noncontrolling interests	(1)
Balance at end of period	$ 5	$ 4

Shareholders' Equity of Xerox Holdings

3 Months Ended

Mar. 31, 2022

Stockholders' Equity Note [Abstract]

Shareholder's 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, 2021	$	168	$	1,802	$	(177)	$	5,631	$	(2,988)	$	4,436	$	7	$	4,443

Comprehensive loss, net	—		—		—		(56)		(44)		(100)		(1)		(101)
Cash dividends declared - common(3)	—		—		—		(39)		—		(39)		—		(39)
Cash dividends declared - preferred(4)	—		—		—		(4)		—		(4)		—		(4)


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

Payments to acquire treasury stock, including fees	—		—		(113)		—		—		(113)		—		(113)
Cancellation of treasury stock	(12)		(246)		258		—		—		—		—		—

Distributions to noncontrolling interests	—		—		—		—		—		—		(1)		(1)

Balance at March 31, 2022	$	156	$	1,560	$	(32)	$	5,532	$	(3,032)	$	4,184	$	5	$	4,189


	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

_____________

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

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

(3)Cash dividends declared on common stock for the three months ended March 31, 2022 and 2021 were $0.25 per share, respectively.

(4)Cash dividends declared on preferred stock for the three months ended March 31, 2022 and 2021 were $20.00 per share, respectively.

Common Stock and Treasury Stock

The following is a summary of the changes in Common and Treasury stock shares:


	Common Stock Shares	Treasury Stock Shares
Balance at December 31, 2021	168,069	8,675
Stock based compensation plans, net	630	—
Acquisition of Treasury stock	—	5,174
Cancellation of Treasury stock	(12,341)	(12,341)
Balance at March 31, 2022	156,358	1,508

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, 2021	$	3,202	$	4,476	$	(2,988)	$	4,690	$	7	$	4,697

Comprehensive loss, net	—		(56)		(44)		(100)		(1)		(101)



Dividends declared to parent	—		(549)		—		(549)		—		(549)


Transfers from parent	390		—		—		390		—		390

Distributions to noncontrolling interests	—		—		—		—		(1)		(1)






Balance at March 31, 2022	$	3,592	$	3,871	$	(3,032)	$	4,431	$	5	$	4,436


	Additional Paid-in Capital		Retained Earnings		AOCL(1)		Xerox Shareholder's Equity		Non- controlling Interests		Total Equity
Balance at December 31, 2020	$	4,888	$	5,834	$	(3,332)	$	7,390	$	4	$	7,394

Comprehensive income (loss), net	—		39		(3)		36		—		36



Dividends declared to parent	—		(201)		—		(201)		—		(201)

Intercompany loan capitalization	(1,494)		—		—		(1,494)		—		(1,494)
Transfers to parent	(34)		—		—		(34)		—		(34)


Balance at March 31, 2021	$	3,360	$	5,672	$	(3,335)	$	5,697	$	4	$	5,701

_____________

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

- Definition

+ References

+ Details