0001770450-22-000041 | 10-Q | XBRL Viewer

Less: Net income (loss) attributable to noncontrolling interests

$ (382)

$ 89

$ (444)

$ 219

(1)

Net (Loss) Income Attributable to Xerox Holdings

(383)

(443)

220

Other Comprehensive (Loss) Income , Net

Translation adjustments, net

^[1]

(277)

(125)

(636)

(122)

Unrealized gains (losses), net

^[1]

(19)

(3)

Changes in defined benefit plans, net

^[1]

122

Other Comprehensive Loss, Net Attributable to Xerox Holdings/Xerox

^[1]

(217)

(70)

(559)

(3)

Comprehensive (Loss) Income, Net

Comprehensive (Loss) Income, Net

(599)

(1,003)

216

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

(1)

Comprehensive (Loss) Income, Net Attributable to Xerox Holdings

$ (600)

$ 20

$ (1,002)

$ 217

[1]	Refer to Note 20 - 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 BALANCE SHEETS (UNAUDITED) - USD ($) shares in Thousands, $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Assets
Cash and cash equivalents	$ 932	$ 1,840
Accounts receivable (net of allowance)	835	818
Billed portion of finance receivables (net of allowance)	91	94
Finance receivables, net	995	1,042
Inventories	777	696
Other current assets	265	211
Total current assets	3,895	4,701
Finance receivables due after one year (net of allowance)	1,814	1,934
Equipment on Operating Leases, Net	216	253
Land, buildings and equipment, net	315	358
Intangible assets, net	216	211
Goodwill	2,753	3,287
Deferred tax assets	496	519
Other long-term assets	1,715	1,960
Total Assets	11,420	13,223
Liabilities and Equity
Short-term debt and current portion of long-term debt	1,070	650
Accounts payable	1,213	1,069
Accrued compensation and benefits costs	250	239
Accrued expenses and other current liabilities	810	871
Total current liabilities	3,343	2,829
Long-term debt	2,676	3,596
Pension and other benefit liabilities	1,298	1,373
Post-retirement medical benefits	209	277
Other long-term liabilities	416	481
Total Liabilities	7,942	8,556
Commitments and Contingencies (See Note 22)
Noncontrolling Interests	10	10
Convertible Preferred Stock	214	214
Common stock	156	168
Additional paid-in capital	1,577	1,802
Treasury stock, at cost	0	(177)
Retained earnings	5,057	5,631
Accumulated other comprehensive loss	(3,547)	(2,988)
Xerox Holdings shareholders’ equity	3,243	4,436
Noncontrolling interests	11	7
Total Equity	3,254	4,443
Total Liabilities and Equity	$ 11,420	$ 13,223
Shares of common stock issued (in shares)	155,570	168,069
Treasury stock (in shares)	0	(8,675)
Shares of common stock outstanding (in shares)	155,570	159,394

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Accounts receivable, allowance for credit loss, current	$ 51	$ 58
Billed portion of finance receivables, allowance	4	4
Finance receivables due after one year, allowance	$ 113	$ 114

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

9 Months Ended

Sep. 30, 2022

Sep. 30, 2021

Cash Flows from Operating Activities

Adjustments required to reconcile Net (loss) income to Cash flows (used in) provided by operating activities

$ (444)

$ 219

Depreciation and amortization

205

249

Provisions

Net gain on sales of businesses and assets

(17)

(40)

Stock-based compensation

Goodwill impairment

412

Restructuring and asset impairment charges

Payments for restructurings

(38)

(61)

Non-service retirement-related costs

^[1]

(18)

(64)

Contributions to retirement plans

^[1]

(106)

(119)

Increase in accounts receivable and billed portion of finance receivables

(48)

(30)

(Increase) decrease in inventories

(136)

Increase in equipment on operating leases

(74)

(92)

(Increase) decrease in finance receivables

(10)

Decrease in other current and long-term assets

Increase in accounts payable

198

Increase in accrued compensation

^[1]

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

(73)

Net change in income tax assets and liabilities

(81)

(11)

Net change in derivative assets and liabilities

(10)

(1)

Other operating, net

(7)

(10)

Net cash (used in) provided by operating activities

(27)

431

Cash Flows from Investing Activities

Cost of additions to land, buildings, equipment and software

(39)

(52)

Proceeds from sales of businesses and assets

Acquisitions, net of cash acquired

(93)

(38)

Other investing, net

(12)

(3)

Net cash used in investing activities

(95)

(54)

Cash Flows from Financing Activities

Net proceeds from short-term debt

Proceeds from issuance of long-term debt

754

311

Payments on long-term debt

(1,259)

(445)

Dividends

(131)

(157)

Payments to acquire treasury stock, including fees

(113)

(500)

Other financing, net

(6)

(3)

Net cash used in financing activities

(755)

(793)

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

(31)

(13)

Decrease in cash, cash equivalents and restricted cash

(908)

(429)

Cash, cash equivalents and restricted cash at beginning of period

1,909

2,691

Cash, Cash Equivalents and Restricted Cash at End of Period

$ 1,001

$ 2,262

[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 in accrued compensation. There was no change to Net cash (used in) 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.

CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME (UNAUDITED) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenues
Total Revenues	$ 1,751	$ 1,758	$ 5,166	$ 5,261
Costs and Expenses
Cost of financing	28	29	78	85
Research, development and engineering expenses	73	82	235	235
Selling, administrative and general expenses	418	413	1,332	1,295
Restructuring and related costs, net	22	10	41	39
Amortization of intangible assets	10	13	31	42
Other expenses, net	1	(33)	66	(28)
Total Costs and Expenses	2,131	1,674	5,640	5,025
(Loss) Income before Income Taxes and Equity Income	(380)	84	(474)	236
Income tax expense (benefit)	3	(4)	(27)	19
Equity in net income of unconsolidated affiliates	1	1	3	2
Net (Loss) Income	(382)	89	(444)	219
Less: Net income (loss) attributable to noncontrolling interests	1	(1)	(1)	(1)
Net (Loss) Income Attributable to Xerox Holdings	(383)	90	(443)	220
Goodwill impairment	412	0	412	0
XEROX CORPORATION
Revenues
Total Revenues	1,751	1,758	5,166	5,261
Costs and Expenses
Cost of financing	28	29	78	85
Research, development and engineering expenses	73	82	235	235
Selling, administrative and general expenses	418	413	1,332	1,295
Restructuring and related costs, net	22	10	41	39
Amortization of intangible assets	10	13	31	42
Other expenses, net	1	(33)	66	(28)
Total Costs and Expenses	2,131	1,674	5,640	5,025
(Loss) Income before Income Taxes and Equity Income	(380)	84	(474)	236
Income tax expense (benefit)	3	(4)	(27)	19
Equity in net income of unconsolidated affiliates	1	1	3	2
Net (Loss) Income	(382)	89	(444)	219
Less: Net income (loss) attributable to noncontrolling interests	1	(1)	(1)	(1)
Net (Loss) Income Attributable to Xerox Holdings	(383)	90	(443)	220
Goodwill impairment	412	0	412	0
Sales
Revenues
Total Revenues	690	657	1,949	1,929
Costs and Expenses
Cost of sales/services, maintenance and rentals	508	498	1,430	1,386
Sales \| XEROX CORPORATION
Revenues
Total Revenues	690	657	1,949	1,929
Costs and Expenses
Cost of sales/services, maintenance and rentals	508	498	1,430	1,386
Services, maintenance and rentals
Revenues
Total Revenues	1,010	1,046	3,061	3,166
Costs and Expenses
Cost of sales/services, maintenance and rentals	659	662	2,015	1,971
Services, maintenance and rentals \| XEROX CORPORATION
Revenues
Total Revenues	1,010	1,046	3,061	3,166
Costs and Expenses
Cost of sales/services, maintenance and rentals	659	662	2,015	1,971
Financing
Revenues
Total Revenues	51	55	156	166
Financing \| XEROX CORPORATION
Revenues
Total Revenues	$ 51	$ 55	$ 156	$ 166

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

3 Months Ended

9 Months Ended

Sep. 30, 2022

Sep. 30, 2021

Sep. 30, 2022

Sep. 30, 2021

Less: Net income (loss) attributable to noncontrolling interests

$ (382)

$ 89

$ (444)

$ 219

(1)

Net (Loss) Income Attributable to Xerox Holdings

(383)

(443)

220

Other Comprehensive (Loss) Income , Net

Translation adjustments, net

^[1]

(277)

(125)

(636)

(122)

Unrealized gains (losses), net

^[1]

(19)

(3)

Changes in defined benefit plans, net

^[1]

122

Other Comprehensive Loss, Net Attributable to Xerox Holdings/Xerox

^[1]

(217)

(70)

(559)

(3)

Comprehensive (Loss) Income, Net

Comprehensive (Loss) Income, Net

(599)

(1,003)

216

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

(1)

Comprehensive (Loss) Income, Net Attributable to Xerox Holdings

(600)

(1,002)

217

XEROX CORPORATION

Less: Net income (loss) attributable to noncontrolling interests

(382)

(444)

219

(1)

Net (Loss) Income Attributable to Xerox Holdings

(383)

(443)

220

Other Comprehensive (Loss) Income , Net

Translation adjustments, net

^[2]

(277)

(125)

(636)

(122)

Unrealized gains (losses), net

^[2]

(19)

(3)

Changes in defined benefit plans, net

^[2]

122

Other Comprehensive Loss, Net Attributable to Xerox Holdings/Xerox

^[2]

(217)

(70)

(559)

(3)

Comprehensive (Loss) Income, Net

Comprehensive (Loss) Income, Net

(599)

(1,003)

216

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

(1)

Comprehensive (Loss) Income, Net Attributable to Xerox Holdings

$ (600)

$ 20

$ (1,002)

$ 217

[1]	Refer to Note 20 - Other Comprehensive (Loss) Income for gross components of Other comprehensive loss, net, reclassification adjustments out of Accumulated other comprehensive loss and related tax effects.
[2]	Refer to Note 20 - 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 BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Cash and cash equivalents	$ 932	$ 1,840
Accounts receivable (net of allowance)	835	818
Billed portion of finance receivables (net of allowance)	91	94
Finance receivables, net	995	1,042
Inventories	777	696
Other current assets	265	211
Total current assets	3,895	4,701
Finance receivables due after one year, net	1,814	1,934
Equipment on Operating Leases, Net	216	253
Land, buildings and equipment, net	315	358
Intangible assets, net	216	211
Goodwill	2,753	3,287
Deferred tax assets	496	519
Other long-term assets	1,715	1,960
Total Assets	11,420	13,223
Short-term debt and current portion of long-term debt	1,070	650
Accounts payable	1,213	1,069
Accrued compensation and benefits costs	250	239
Accrued expenses and other current liabilities	810	871
Total current liabilities	3,343	2,829
Long-term debt	2,676	3,596
Pension and other benefit liabilities	1,298	1,373
Post-retirement medical benefits	209	277
Other long-term liabilities	416	481
Total Liabilities	7,942	8,556
Commitments and Contingencies (See Note 22)
Noncontrolling Interests	10	10
Additional paid-in capital	1,577	1,802
Retained earnings	5,057	5,631
Accumulated other comprehensive loss	(3,547)	(2,988)
Xerox Holdings shareholders’ equity	3,243	4,436
Noncontrolling interests	11	7
Total Equity	3,254	4,443
Total Liabilities and Equity	11,420	13,223
XEROX CORPORATION
Cash and cash equivalents	932	1,840
Accounts receivable (net of allowance)	835	818
Billed portion of finance receivables (net of allowance)	91	94
Finance receivables, net	995	1,042
Inventories	777	696
Other current assets	265	211
Total current assets	3,895	4,701
Finance receivables due after one year, net	1,814	1,934
Equipment on Operating Leases, Net	216	253
Land, buildings and equipment, net	315	358
Intangible assets, net	216	211
Goodwill	2,753	3,287
Deferred tax assets	496	519
Other long-term assets	1,694	1,952
Total Assets	11,399	13,215
Short-term debt and current portion of long-term debt	1,070	650
Accounts payable	1,213	1,069
Accrued compensation and benefits costs	250	239
Accrued expenses and other current liabilities	762	823
Total current liabilities	3,295	2,781
Long-term debt	1,180	2,102
Related party debt	1,496	1,494
Pension and other benefit liabilities	1,298	1,373
Post-retirement medical benefits	209	277
Other long-term liabilities	416	481
Total Liabilities	7,894	8,508
Commitments and Contingencies (See Note 22)
Noncontrolling Interests	10	10
Additional paid-in capital	3,643	3,202
Retained earnings	3,388	4,476
Accumulated other comprehensive loss	(3,547)	(2,988)
Xerox Holdings shareholders’ equity	3,484	4,690
Noncontrolling interests	11	7
Total Equity	3,495	4,697
Total Liabilities and Equity	$ 11,399	$ 13,215

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Accounts receivable, allowance for credit loss, current	$ 51	$ 58
Billed portion of finance receivables, allowance	4	4
Finance receivables due after one year, allowance	113	114
XEROX CORPORATION
Accounts receivable, allowance for credit loss, current	51	58
Billed portion of finance receivables, allowance	4	4
Finance receivables due after one year, allowance	$ 113	$ 114

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

9 Months Ended

Sep. 30, 2022

Sep. 30, 2021

Cash Flows from Operating Activities

Adjustments required to reconcile Net (loss) income to Cash flows (used in) provided by operating activities

$ (444)

$ 219

Depreciation and amortization

205

249

Provisions

Net gain on sales of businesses and assets

(17)

(40)

Stock-based compensation

Restructuring and asset impairment charges

Payments for restructurings

(38)

(61)

Non-service retirement-related costs

^[1]

(18)

(64)

Contributions to retirement plans

^[1]

(106)

(119)

Increase in accounts receivable and billed portion of finance receivables

(48)

(30)

(Increase) decrease in inventories

(136)

Increase in equipment on operating leases

(74)

(92)

(Increase) decrease in finance receivables

(10)

Decrease in other current and long-term assets

Increase in accounts payable

198

Increase in accrued compensation

^[1]

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

(73)

Net change in income tax assets and liabilities

(81)

(11)

Net change in derivative assets and liabilities

(10)

(1)

Other operating, net

(7)

(10)

Net cash (used in) provided by operating activities

(27)

431

Cash Flows from Investing Activities

Cost of additions to land, buildings, equipment and software

(39)

(52)

Proceeds from sales of businesses and assets

Acquisitions, net of cash acquired

(93)

(38)

Other investing, net

(12)

(3)

Net cash used in investing activities

(95)

(54)

Cash Flows from Financing Activities

Net proceeds from short-term debt

Proceeds from issuance of long-term debt

754

311

Payments on long-term debt

(1,259)

(445)

Other financing, net

(6)

(3)

Net cash used in financing activities

(755)

(793)

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

(31)

(13)

Decrease in cash, cash equivalents and restricted cash

(908)

(429)

Cash, cash equivalents and restricted cash at beginning of period

1,909

2,691

Cash, Cash Equivalents and Restricted Cash at End of Period

1,001

2,262

Goodwill impairment

412

XEROX CORPORATION

Cash Flows from Operating Activities

Adjustments required to reconcile Net (loss) income to Cash flows (used in) provided by operating activities

(444)

219

Depreciation and amortization

205

249

Provisions

Net gain on sales of businesses and assets

(17)

(40)

Stock-based compensation

Restructuring and asset impairment charges

Payments for restructurings

(38)

(61)

Non-service retirement-related costs

^[2]

(18)

(64)

Contributions to retirement plans

^[2]

(106)

(119)

Increase in accounts receivable and billed portion of finance receivables

(48)

(30)

(Increase) decrease in inventories

(136)

Increase in equipment on operating leases

(74)

(92)

(Increase) decrease in finance receivables

(10)

Decrease in other current and long-term assets

Increase in accounts payable

198

Increase in accrued compensation

^[2]

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

(73)

Net change in income tax assets and liabilities

(81)

(11)

Net change in derivative assets and liabilities

(10)

(1)

Other operating, net

(7)

(10)

Net cash (used in) provided by operating activities

(27)

431

Cash Flows from Investing Activities

Cost of additions to land, buildings, equipment and software

(39)

(52)

Proceeds from sales of businesses and assets

Acquisitions, net of cash acquired

(93)

(38)

Other investing, net

Net cash used in investing activities

(82)

(51)

Cash Flows from Financing Activities

Net proceeds from short-term debt

Proceeds from issuance of long-term debt

754

311

Payments on long-term debt

(1,259)

(445)

Distributions to parent

(267)

(674)

Other financing, net

Net cash used in financing activities

(768)

(796)

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

(31)

(13)

Decrease in cash, cash equivalents and restricted cash

(908)

(429)

Cash, cash equivalents and restricted cash at beginning of period

1,909

2,691

Cash, Cash Equivalents and Restricted Cash at End of Period

1,001

2,262

Goodwill impairment

$ 412

$ 0

[1]

[2]

Basis of Presentation	9 Months Ended
Basis of Presentation	Sep. 30, 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,” and 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 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. During 2022, we had events and conditions in the first quarter and third quarter that required an interim assessment of Goodwill. 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, consistent with the determination that we had two operating/reportable segments and 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. In 2022, the Company continued to encounter operational challenges due to unfavorable product and services mix associated with supply chain constraints as well the impacts of unfavorable macroeconomic conditions including inflationary pressure on product and labor costs, geopolitical uncertainty in Europe and the continued impacts from the COVID-19 recovery. Additionally, higher interest rates continue to put downward pressure on the Company’s valuation. Although the Company expects operating results to improve in the fourth quarter of 2022, and in full-year 2023 as the Company works down its backlog and realizes benefits from price increases and cost actions; operating results are expected to be below previous forecasts and will continue to be pressured as result of these unfavorable macroeconomic conditions. As a result of these negative financial impacts and a sustained market capitalization below our book value, in the third quarter 2022 we determined there was a triggering event requiring an interim quantitative assessment of Goodwill. After completing our interim impairment test, we concluded that the estimated fair value of the Print and Other reporting unit (the only reporting unit with Goodwill) had declined below its carrying value and we recognized an after-tax non-cash impairment charge of $395 ($412 pre-tax) related to our Goodwill in the third quarter 2022. The estimated fair value of the Print and Other reporting unit is based on estimates and assumptions that are considered Level 3 inputs under the fair value hierarchy. If the Company's future performance varies from current expectations, assumptions, or estimates, including those assumptions relating to the supply chain constraints, interest rates, inflationary pressure on product and labor costs, geopolitical uncertainty in Europe, or the continued impacts from the COVID-19 recovery, this may impact the impairment analysis and could reduce the underlying cash flows used to estimate fair values and result in a decline in fair value that may trigger future impairment charges. We will continue to monitor developments throughout the remainder of 2022 including updates to our forecasts as well as our market capitalization, and an update of our assessment and related estimates may be required in the future.

Recent Accounting Pronouncements	9 Months Ended
Recent Accounting Pronouncements	Sep. 30, 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: Liabilities In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations that requires entities that use supplier finance programs in connection with the purchase of goods and services to disclose the key terms of the programs and information about obligations outstanding at the end of the reporting period, including a rollforward of those obligations. The guidance does not affect the recognition, measurement or financial statement presentation of supplier finance program obligations. The new standard’s requirements to disclose the key terms of the programs and information about obligations outstanding are effective for all interim and annual periods of our fiscal year beginning on January 1, 2023. The new standard’s requirement to disclose a rollforward of obligations outstanding will be effective for our fiscal year beginning on January 1, 2024. Early adoption is permitted. We are currently evaluating the impact of the adoption of this standard on the Company's consolidated financial statements and related disclosures. 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 disclosure of current-period gross write-offs by year of origination 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. 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. Since this standard primarily relates to new disclosure, we do not expect the adoption to have a material impact on our financial condition, results of operations, and cash flows in future periods. 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 and the adoption has not had a material impact on acquisitions made year to 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: •Fair Value Measurement: ASU 2022-03, Fair Value Measurement (Topic 820), Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. This update is effective for our fiscal year beginning January 1, 2024. •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 (Subtopic 470-50), 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 was 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.

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

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Revenue from Contract with Customer [Abstract]

Revenue

9 Months Ended

Sep. 30, 2022

Revenue

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Primary geographical markets(1):
United States	$	986	$	1,012	$	2,918	$	3,001
Europe	470		487		1,403		1,500
Canada	131		97		381		294
Other	164		162		464		466
Total Revenues	$	1,751	$	1,758	$	5,166	$	5,261

Major product and services lines:
Equipment	$	390	$	387	$	1,070	$	1,197
Supplies, paper and other sales	300		270		879		732
Maintenance agreements(2)	420		447		1,295		1,330
Service arrangements(3)	487		493		1,451		1,490
Rental and other	103		106		315		346
Financing	51		55		156		166

Total Revenues	$	1,751	$	1,758	$	5,166	$	5,261

Sales channels:

Direct equipment lease(4)	$	146	$	170	$	425	$	506
Distributors & resellers(5)	318		283		877		826
Customer direct	226		204		647		597
Total Sales	$	690	$	657	$	1,949	$	1,929

_____________

(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 $131 and $144 at September 30, 2022 and December 31, 2021, respectively. The majority of the balance at September 30, 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 September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Incremental direct costs of obtaining a contract	$	15	$	14	$	43	$	44
Amortization of incremental direct costs	17		18		51		55

The balance of deferred incremental direct costs net of accumulated amortization at September 30, 2022 and December 31, 2021 was $121 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 September 30, 2022 and December 31, 2021, amounts deferred associated with contract fulfillment costs and inducements were $11 and $15, respectively, and the related amortization was $1 and $2 for the three months ended September 30, 2022 and 2021, respectively, and $4 and $5 for the nine months ended September 30, 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.

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.

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Segment Reporting

9 Months Ended

Sep. 30, 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 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 internally standing up 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 (FITTLE) (see below).

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 include A4 devices and desktop printers and multifunction devices that primarily serve small and medium workgroups/work teams.

•“Mid-Range”, which include A3 devices that generally serve large workgroup/work teams environments as well as products in the Light Production monochrome and color segments serving centralized print centers, print for pay and lower volume production print establishments.

•“High-End”, which include production printing and publishing systems that generally serve the graphic communications marketplace and print centers in 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 (FITTLE) 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 and non-Xerox products. 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 segments may not be indicative of the results the businesses would have as on a standalone basis or what might be presented for the businesses 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 September 30,
	2022									2021
	Print and Other			Financing (FITTLE)			Total			Print and Other			Financing (FITTLE)			Total
External net revenue	$	1,604		$	147		$	1,751		$	1,590		$	168		$	1,758
Intersegment net revenue(1)	37			3			40			46			3			49
Total Segment net revenue	$	1,641		$	150		$	1,791		$	1,636		$	171		$	1,807

Segment profit	$	57		$	8		$	65		$	50		$	24		$	74
Segment margin(2)	3.6		%	5.4		%	3.7		%	3.1		%	14.3		%	4.2		%

Depreciation and amortization	$	28		$	27		$	55		$	28		$	38		$	66


Interest income	—			51			51			—			55			55
Interest expense(3)	—			30			30			—			31			31


	Nine Months Ended September 30,
	2022									2021
	Print and Other			Financing (FITTLE)			Total			Print and Other			Financing (FITTLE)			Total
External net revenue	$	4,716		$	450		$	5,166		$	4,742		$	519		$	5,261
Intersegment net revenue(1)	108			9			117			147			9			156
Total Segment net revenue	$	4,824		$	459		$	5,283		$	4,889		$	528		$	5,417

Segment profit	$	55		$	42		$	97		$	232		$	57		$	289
Segment margin(2)	1.2		%	9.3		%	1.9		%	4.9		%	11.0		%	5.5		%

Depreciation and amortization	$	85		$	89		$	174		$	86		$	121		$	207


Interest income	—			156			156			—			166			166
Interest expense(3)	—			84			84			—			91			91

_____________

(1)Intersegment net revenue is primarily commissions and other payments made by the Financing (FITTLE) 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 (FITTLE) Segment includes non-financing interest expense on allocated debt associated with Equipment on operating lease of $2 and $2 for the three months ended September 30, 2022 and 2021, respectively, and $6 and $6 for the nine months ended September 30, 2022 and 2021, respectively.

Selected financial information for our reportable segments was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021





Pre-tax (Loss) Income
Total reported segments	$	65	$	74	$	97	$	289
Goodwill impairment	(412)		—		(412)		—
Restructuring and related costs, net	(22)		(10)		(41)		(39)
Amortization of intangible assets	(10)		(13)		(31)		(42)
Accelerated share vesting	—		—		(21)		—
Other expenses, net	(1)		33		(66)		28
Total Pre-tax (loss) income	$	(380)	$	84	$	(474)	$	236

Depreciation and Amortization
Total reported segments	$	55	$	66	$	174	$	207
Amortization of intangible assets	10		13		31		42
Total Depreciation and amortization	$	65	$	79	$	205	$	249

Interest Expense
Total reported segments	$	30	$	31	$	84	$	91
Corporate	19		21		67		65
Total Interest expense	$	49	$	52	$	151	$	156

Interest Income
Total reported segments	$	51	$	55	$	156	$	166
Corporate	4		1		8		3
Total Interest income	$	55	$	56	$	164	$	169

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.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Lessor

9 Months Ended

Sep. 30, 2022

Supplemental Financial Information [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 September 30,				Nine Months Ended September 30,
	Location in Statements of (Loss) Income	2022		2021		2022		2021
Revenue from sales type leases	Sales	$	146	$	170	$	425	$	506


Interest income on lease receivables	Financing	51		55		156		166


Lease income - operating leases	Services, maintenance and rentals	40		54		132		172
Variable lease income	Services, maintenance and rentals	16		15		47		46
Total Lease income		$	253	$	294	$	760	$	890

Profit at lease commencement on sales-type leases was estimated to be $39 and $51 for the three months ended September 30, 2022 and 2021, respectively, and $127 and $152 for the nine months ended September 30, 2022 and 2021, respectively.

Lessor

The components of lease income are as follows:


		Three Months Ended September 30,				Nine Months Ended September 30,
	Location in Statements of (Loss) Income	2022		2021		2022		2021
Revenue from sales type leases	Sales	$	146	$	170	$	425	$	506


Interest income on lease receivables	Financing	51		55		156		166


Lease income - operating leases	Services, maintenance and rentals	40		54		132		172
Variable lease income	Services, maintenance and rentals	16		15		47		46
Total Lease income		$	253	$	294	$	760	$	890

Acquisitions and Investments	9 Months Ended
Acquisitions and Investments	Sep. 30, 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 $52 (CAD 66 million), net of cash. 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. In July 2022, Xerox acquired Go Inspire, a U.K.-based print and digital marketing and communication services provider, for approximately $41 (GBP 34 million), net of cash. The acquisition strengthens Xerox’s strategy to grow its global Digital Services presence in EMEA. The Goodwill associated with the acquisition of Go Inspire is included in our Print and Other segment. The operating results of these acquisitions are not material to our financial statements and are included within our results from the acquisition date. The purchase prices for both acquisitions were all cash for 100% ownership of the acquired company and were primarily allocated to Intangible assets, net (approximately $51) and Goodwill (approximately $64), 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.

Supplementary Financial Information

9 Months Ended

Sep. 30, 2022

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 September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021

Cost of services, maintenance and rentals	$	—	$	4	$	—	$	17

Selling, administrative and general expenses	—		5		—		12
Total Estimated savings	$	—	$	9	$	—	$	29

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 22 - 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:


	September 30, 2022		December 31, 2021
Cash and cash equivalents	$	932	$	1,840
Restricted cash
Litigation deposits in Brazil	37		34
Escrow and cash collections related to secured borrowing arrangements(1)	31		32
Other restricted cash	1		3
Total Restricted cash	69		69
Cash, cash equivalents and restricted cash	$	1,001	$	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:


	September 30, 2022		December 31, 2021
Other current assets	$	31	$	33
Other long-term assets	38		36
Total Restricted cash	$	69	$	69

Supplemental Cash Flow Information

Summarized cash flow information is as follows:


	Location in Statement of Cash Flows	Nine Months Ended September 30,
			2022		2021
Provision for receivables	Operating		$	25	$	13
Provision for inventory	Operating		23		25
Provision for product warranties	Operating		5		6
Depreciation of buildings and equipment	Operating		51		57
Depreciation and obsolescence of equipment on operating leases	Operating		89		120
Amortization of internal use software	Operating		34		30

Amortization of acquired intangible assets	Operating		31		42
Amortization of customer contract costs(1)	Operating		55		60
Cost of additions to land, buildings and equipment	Investing		24		21
Cost of additions to internal use software	Investing		15		31
Payments to acquire noncontrolling interests	Investing		13		3
Common stock dividends - Xerox Holdings	Financing		120		146
Preferred stock dividends - Xerox Holdings	Financing		11		11


Payments to noncontrolling interests	Financing		1		—
Proceeds from noncontrolling interests	Financing		6		15
Repurchases related to stock-based compensation - Xerox Holdings	Financing		10		14

_____________

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

Accounts Receivable, Net

9 Months Ended

Sep. 30, 2022

Accounts Receivable, Net

Accounts receivable, net were as follows:


	September 30, 2022		December 31, 2021
Invoiced	$	679	$	660
Accrued(1)	207		216
Allowance for doubtful accounts	(51)		(58)
Accounts receivable, net	$	835	$	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
Provision	3		1
Charge-offs	(2)		(2)
Recoveries and other(1)	(1)		1
Balance at June 30th	63		68
Provision	(1)		0
Charge-offs	(5)		(5)
Recoveries and other(1)	(6)		(1)
Balance at September 30th	$	51	$	62

_____________

(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 5.8% at September 30, 2022 and 6.6% at December 31, 2021. The decrease in the allowance is primarily due to a reduction in estimated losses for customer accommodations and other billing adjustments.

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, $119 and $102 remained uncollected as of September 30, 2022 and December 31, 2021, respectively.

Accounts receivable sales activity was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Accounts receivable sales(1)	$	164	$	127	$	400	$	359

____________

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

Finance Receivables, Net

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

Finance receivables, net were as follows:


	September 30, 2022		December 31, 2021
Gross receivables	$	3,368	$	3,568
Unearned income	(351)		(380)
Subtotal	3,017		3,188
Residual values	—		—
Allowance for doubtful accounts	(117)		(118)
Finance receivables, net	2,900		3,070
Less: Billed portion of finance receivables, net	91		94
Less: Current portion of finance receivables not billed, net	995		1,042
Finance receivables due after one year, net	$	1,814	$	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 3.9% at September 30, 2022 and 3.7% and 4.0% at December 31, 2021 and 2020, respectively. In determining the level of reserve required we critically assessed current and forecasted economic conditions and trends to ensure we objectively considered 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.

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 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 including higher inflation and interest rates. In addition, there continues to be uncertainty regarding the effects from the Russia/Ukraine war and its impact on the macro or global economy. As a result of these uncertainties, our reserves as a percent of receivables have remained largely consistent since 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 trends, 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
Provision	—		1		3		4
Charge-offs	(3)		(1)		(2)		(6)
Recoveries and other(2)	—		—		(2)		(2)
Balance at June 30, 2022	75		11		30		116
Provision	6		1		2		9
Charge-offs	(4)		(1)		(1)		(6)
Recoveries and other(2)	—		—		(2)		(2)

Balance at September 30, 2022	$	77	$	11	$	29	$	117
Finance receivables as of September 30, 2022 collectively evaluated for impairment (3)	$	1,883	$	214	$	920	$	3,017

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
Provision	6		(1)		(3)		2
Charge-offs	(3)		(1)		(1)		(5)
Recoveries and other(2)	—		1		—		1
Balance at June 30, 2021	81		15		37		133
Provision	—		(3)		(1)		(4)
Charge-offs	(1)		(1)		—		(2)
Recoveries and other(2)	—		—		—		—

Balance at September 30, 2021	$	80	$	11	$	36	$	127
Finance receivables as of September 30, 2021 collectively evaluated for impairment(3)	$	1,866	$	262	$	1,074	$	3,202

_____________

(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 $117 and $127 at September 30, 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:


	September 30, 2022
	2022		2021		2020		2019		2018		Prior		Total Finance Receivables
United States (Direct)
Low Credit Risk	$	116	$	115	$	92	$	64	$	33	$	4	$	424
Average Credit Risk	53		39		30		36		11		3		172
High Credit Risk	50		76		55		21		8		3		213
Total	$	219	$	230	$	177	$	121	$	52	$	10	$	809

United States (Indirect)
Low Credit Risk	$	183	$	182	$	101	$	63	$	18	$	2	$	549
Average Credit Risk	147		169		84		46		17		1		464
High Credit Risk	18		24		11		5		3		—		61
Total	$	348	$	375	$	196	$	114	$	38	$	3	$	1,074

Canada
Low Credit Risk	$	18	$	24	$	18	$	14	$	7	$	1	$	82
Average Credit Risk	28		26		24		18		7		2		105
High Credit Risk	5		5		9		4		3		1		27
Total	$	51	$	55	$	51	$	36	$	17	$	4	$	214

EMEA(1)
Low Credit Risk	$	170	$	165	$	93	$	65	$	32	$	6	$	531
Average Credit Risk	103		104		67		48		18		3		343
High Credit Risk	11		12		10		9		3		1		46
Total	$	284	$	281	$	170	$	122	$	53	$	10	$	920







Total Finance Receivables
Low Credit Risk	$	487	$	486	$	304	$	206	$	90	$	13	$	1,586
Average Credit Risk	331		338		205		148		53		9		1,084
High Credit Risk	84		117		85		39		17		5		347
Total	$	902	$	941	$	594	$	393	$	160	$	27	$	3,017


	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 probable.

The aging of our billed finance receivables is as follows:


	September 30, 2022
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Direct	$	29	$	5	$	6	$	40	$	769	$	809	$	48
Indirect	27		6		4		37		1,037		1,074		—






Total United States	56		11		10		77		1,806		1,883		48
Canada	6		1		—		7		207		214		6





EMEA(1)	8		2		1		11		909		920		11

Total	$	70	$	14	$	11	$	95	$	2,922	$	3,017	$	65

	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 2022 and 2021, we sold certain finance receivables to consolidated special purpose entities included in our Condensed Consolidated Balance Sheet as collateral for secured loans.

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

Finance Receivables, Net

9 Months Ended

Sep. 30, 2022

Inventories and Equipment on Operating Leases, Net [Abstract]

Finance Receivables, Net

Accounts Receivable, Net

Accounts receivable, net were as follows:


	September 30, 2022		December 31, 2021
Invoiced	$	679	$	660
Accrued(1)	207		216
Allowance for doubtful accounts	(51)		(58)
Accounts receivable, net	$	835	$	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
Provision	3		1
Charge-offs	(2)		(2)
Recoveries and other(1)	(1)		1
Balance at June 30th	63		68
Provision	(1)		0
Charge-offs	(5)		(5)
Recoveries and other(1)	(6)		(1)
Balance at September 30th	$	51	$	62

_____________

(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

Accounts receivable sales activity was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Accounts receivable sales(1)	$	164	$	127	$	400	$	359

____________

Finance Receivables, Net

Finance receivables, net were as follows:


	September 30, 2022		December 31, 2021
Gross receivables	$	3,368	$	3,568
Unearned income	(351)		(380)
Subtotal	3,017		3,188
Residual values	—		—
Allowance for doubtful accounts	(117)		(118)
Finance receivables, net	2,900		3,070
Less: Billed portion of finance receivables, net	91		94
Less: Current portion of finance receivables not billed, net	995		1,042
Finance receivables due after one year, net	$	1,814	$	1,934

Finance Receivables – Allowance for Credit Losses and Credit Quality

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


	United States		Canada		EMEA(1)		Total
Balance at December 31, 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
Provision	—		1		3		4
Charge-offs	(3)		(1)		(2)		(6)
Recoveries and other(2)	—		—		(2)		(2)
Balance at June 30, 2022	75		11		30		116
Provision	6		1		2		9
Charge-offs	(4)		(1)		(1)		(6)
Recoveries and other(2)	—		—		(2)		(2)

Balance at September 30, 2022	$	77	$	11	$	29	$	117
Finance receivables as of September 30, 2022 collectively evaluated for impairment (3)	$	1,883	$	214	$	920	$	3,017

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
Provision	6		(1)		(3)		2
Charge-offs	(3)		(1)		(1)		(5)
Recoveries and other(2)	—		1		—		1
Balance at June 30, 2021	81		15		37		133
Provision	—		(3)		(1)		(4)
Charge-offs	(1)		(1)		—		(2)
Recoveries and other(2)	—		—		—		—

Balance at September 30, 2021	$	80	$	11	$	36	$	127
Finance receivables as of September 30, 2021 collectively evaluated for impairment(3)	$	1,866	$	262	$	1,074	$	3,202

_____________

(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 $117 and $127 at September 30, 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:


	September 30, 2022
	2022		2021		2020		2019		2018		Prior		Total Finance Receivables
United States (Direct)
Low Credit Risk	$	116	$	115	$	92	$	64	$	33	$	4	$	424
Average Credit Risk	53		39		30		36		11		3		172
High Credit Risk	50		76		55		21		8		3		213
Total	$	219	$	230	$	177	$	121	$	52	$	10	$	809

United States (Indirect)
Low Credit Risk	$	183	$	182	$	101	$	63	$	18	$	2	$	549
Average Credit Risk	147		169		84		46		17		1		464
High Credit Risk	18		24		11		5		3		—		61
Total	$	348	$	375	$	196	$	114	$	38	$	3	$	1,074

Canada
Low Credit Risk	$	18	$	24	$	18	$	14	$	7	$	1	$	82
Average Credit Risk	28		26		24		18		7		2		105
High Credit Risk	5		5		9		4		3		1		27
Total	$	51	$	55	$	51	$	36	$	17	$	4	$	214

EMEA(1)
Low Credit Risk	$	170	$	165	$	93	$	65	$	32	$	6	$	531
Average Credit Risk	103		104		67		48		18		3		343
High Credit Risk	11		12		10		9		3		1		46
Total	$	284	$	281	$	170	$	122	$	53	$	10	$	920







Total Finance Receivables
Low Credit Risk	$	487	$	486	$	304	$	206	$	90	$	13	$	1,586
Average Credit Risk	331		338		205		148		53		9		1,084
High Credit Risk	84		117		85		39		17		5		347
Total	$	902	$	941	$	594	$	393	$	160	$	27	$	3,017


	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:


	September 30, 2022
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Direct	$	29	$	5	$	6	$	40	$	769	$	809	$	48
Indirect	27		6		4		37		1,037		1,074		—






Total United States	56		11		10		77		1,806		1,883		48
Canada	6		1		—		7		207		214		6





EMEA(1)	8		2		1		11		909		920		11

Total	$	70	$	14	$	11	$	95	$	2,922	$	3,017	$	65

	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 2022 and 2021, we sold certain finance receivables to consolidated special purpose entities included in our Condensed Consolidated Balance Sheet as collateral for secured loans.

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

Inventories and Equipment on Operating Leases, Net

9 Months Ended

Sep. 30, 2022

Inventories and Equipment on Operating Leases, Net

The following is a summary of Inventories by major category:


	September 30, 2022		December 31, 2021
Finished goods	$	617	$	568
Work-in-process	47		43
Raw materials	113		85
Total Inventories	$	777	$	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:


	September 30, 2022		December 31, 2021
Equipment on operating leases	$	1,142	$	1,266
Accumulated depreciation	(926)		(1,013)
Equipment on operating leases, net	$	216	$	253

Total contingent rentals on operating leases, consisting principally of usage charges in excess of minimum contracted amounts, were $16 and $15 for the three months ended September 30, 2022 and 2021, respectively, and $47 and $46 for the nine months ended September 30, 2022 and 2021, respectively.

Secured Borrowings and Collateral

In 2021, we sold the rights to payments under operating leases to a consolidated special purpose entity included in our Condensed Consolidated Balance Sheet as collateral for a secured loan.

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

Lessee

9 Months Ended

Sep. 30, 2022

Restructuring and Related Activities [Abstract]

Lessee

Operating Leases

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

The components of lease expense are as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Operating lease expense	$	25	$	25	$	74	$	79
Short-term lease expense	4		5		12		16
Variable lease expense(1)	12		12		37		35
Sublease income	(1)		(1)		(5)		(3)

Total Lease expense	$	40	$	41	$	118	$	127

_____________

(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 September 30, 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:


	September 30, 2022		December 31, 2021
Other long-term assets	$	215	$	264

Accrued expenses and other current liabilities	$	71	$	79
Other long-term liabilities	160		204
Total Operating lease liabilities	$	231	$	283

Restructuring Programs

9 Months Ended

Sep. 30, 2022

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 nine months ended September 30, 2022, we recorded net restructuring charges of $54, which included $59 of severance costs related to headcount reductions of approximately 1,600 employees worldwide, and $1 of other contractual termination costs. These costs were partially offset by $6 of net reversals, which primarily reflect 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 our restructuring programs is summarized below:


	Severance and Related Costs		Other Contractual Termination Costs(2)		Total
Balance at December 31, 2021	$	25	$	2	$	27
Provision	22		—		22
Reversals	(3)		—		(3)
Net current period charges(1)	19		—		19
Charges against reserve and currency	(7)		—		(7)
Balance at March 31, 2022	37		2		39
Provision	22		1		23
Reversals	(1)		(1)		(2)
Net current period charges(1)	21		—		21
Charges against reserve and currency	(14)		—		(14)
Balance at June 30, 2022	44		2		46
Provision	15		—		15
Reversals	(1)		—		(1)
Net current period charges(1)	14		—		14
Charges against reserve and currency	(19)		—		(19)
Balance at September 30, 2022	$	39	$	2	$	41

______________

(1)Represents net amount recognized within the Condensed Consolidated Statements of (Loss) Income for the period shown for restructuring 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:


	Nine Months Ended September 30,
		2022		2021
Charges against reserve and currency		$	(40)	$	(74)

Effects of foreign currency and other non-cash items		2		13
Restructuring cash payments		$	(38)	$	(61)

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Retention related severance/bonuses(1)	$	(1)	$	7	$	(3)	$	6
Contractual severance costs	1		—		—		3
Consulting and other costs(2)	—		—		—		2
Total	$	—	$	7	$	(3)	$	11

_____________

(1)Includes retention related severance and bonuses for employees expected to continue working beyond their minimum notification period before termination. The credit for the nine months ended September 30, 2022 and 2021 reflects a change in estimate.

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

Cash paid for restructuring related costs were $4 and $9 for the nine months ended September 30, 2022 and 2021, respectively. The restructuring related costs reserve was $10 and $18 at September 30, 2022 and December 31, 2021, respectively. The balance at September 30, 2022 is expected to be paid over the next twelve months.

In connection with our restructuring programs, during the nine months ended September 30, 2022, we recorded a net gain of $10 associated with initiatives involving the Company's owned and leased facilities, including the exit, abandonment, sale and sublease of those facilities. Information related to our restructuring-related asset impairment activity is summarized below:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Lease right of use assets(1)	$	1	$	—	$	2	$	2
Owned assets(1)	9		—		10		10
Asset impairments	10		—		12		12
Gain on sales of owned assets(2)	(2)		—		(22)		—
Adjustments/Reversals	—		—		—		(1)
Net asset impairment charge (credit)	$	8	$	—	$	(10)	$	11

______________

(1)Primarily related to the exit and abandonment of leased and owned facilities, net of any potential sublease income and recoveries.

(2)Reflect gain on the sales of exited surplus facilities.

Debt

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Debt

Early Extinguishment of Senior Notes

In June 2022, we completed the early redemption of $350 of the $1 billion of Xerox Corporation 4.625% Senior Notes due March 2023, for $353 in cash consideration, which included an early redemption premium over par of $3. The early redemption resulted in a net loss of $4, inclusive of fees and the write-off of debt carrying value adjustments.

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 September 30, 2022 and December 31, 2021, the balance of the Intercompany Loan reported in Xerox Corporation’s Condensed Consolidated Balance Sheet was $1,496 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 $21 for the three months ended September 30, 2022 and 2021, respectively, and $59 and $60 for the nine months ended September 30, 2022 and 2021, respectively.

Credit Facility

In July 2022, Xerox Corporation, as borrower, and its parent company, Xerox Holdings Corporation, entered into a new Credit Agreement with several participating lending banks. The new Credit Agreement provides Xerox Corporation with a $500 Revolving Credit Facility and has a maturity date of July 7, 2024. We deferred $3 of debt issuance costs in connection with this credit agreement, which will be amortized over the two-year term of the arrangement. This new facility replaced our prior $1.5 billion Credit Facility.

The new revolving Credit Facility includes an uncommitted accordion feature that allows the Company to increase the facility by a total of up to $150, subject to obtaining additional commitments from existing lenders or new lending institutions. The new revolving Credit Agreement also includes a $150 letter of credit sub-facility. At September 30, 2022, we had no outstanding borrowings or letters of credit under the new revolving Credit Facility.

At Xerox Corporation’s election, the borrowings under the new revolving Credit Facility in U.S. dollars will bear interest at either (i) a rate per annum equal to the highest of Citibank’s prime rate or a rate 0.5% in excess of the Federal Funds Rate or a rate 1.0% in excess of one-month Term SOFR (the Base Rate), in each case plus an applicable margin, or (ii) the one-, three-, or six-month per annum Term SOFR (the Term SOFR Rate), as selected by the Company, plus an applicable margin. The applicable margin for Base Rate loans, through the quarterly

reporting for the fiscal quarter ending September 30, 2022, is 1.00% per annum, and thereafter varies from 0.50% to 1.25% depending on the Company’s consolidated total net leverage ratio (as defined in the New Credit Agreement). The applicable margin for Term SOFR Rate loans, through the quarterly reporting for the fiscal quarter ending September 30, 2022, is 2.00% per annum, and thereafter varies from 1.50% to 2.25% depending on the Company’s consolidated total net leverage ratio. Xerox Corporation may also borrow in currencies other than U.S. dollars pursuant to the credit agreement, and such borrowings will bear interest calculated under a construct similar to that described above. Principal outstanding would be payable in full at maturity on July 7, 2024.

Xerox Corporation’s borrowings under the new revolving Credit Facility are supported by guarantees from the Company and its subsidiary guarantors, and by security interests in substantially all of the assets of Xerox Holdings Corporation, as well as Xerox Corporation and its subsidiary guarantors, subject to certain exceptions. If an event of default occurs under the new revolving Credit Facility, the entire principal amount outstanding under the New Revolving Credit Facility, together with all accrued unpaid interest and other amounts owing in respect thereof, may be declared immediately due and payable, subject, in certain instances, to the expiration of applicable cure periods.

The new revolving Credit Facility requires the Company to comply with the following financial covenants measured as of the end of each fiscal quarter, commencing with the quarter ending September 30, 2022:

(a)Minimum Unrestricted Cash - maintain an Unrestricted Cash balance, as defined in the new revolving Credit Agreement, in an amount not less than $500 as of the last day of the quarter.

(b)Total Net Leverage Ratio - a quarterly test that is calculated as net debt for borrowed money divided by consolidated EBITDA, both as defined in the new revolving Credit Agreement - with a cap on cash netting of $1.0 billion. The required Total Net Leverage Ratio is 5.25:1 at September 30, 2022; 5.00:1.00 at December 31, 2022; 4.75:1.00 at March 31, 2023;4.50:1:00 at June 30, 2023 and 4.25:1.00 thereafter.

(c)Interest Coverage Ratio - a quarterly test that is calculated as consolidated EBITDA divided by consolidated interest expense, both as defined in the new revolving Credit Agreement. The Interest Coverage Ratio is 2.25:1:00 at September 30, 2022; 2.50:1.00 at December 31, 2022; and 2.75:1.00 thereafter.

In addition, the new revolving Credit Facility requires that no more than $300 of the remaining $650 2023 Senior Notes is outstanding as of December 15, 2022 in order for the facility to remain in effect.

The new revolving Credit Facility also imposes restrictions on the Company and its subsidiaries, including on the amount of dividends the Company is permitted to pay and the amount of shares the Company is permitted to repurchase. Pursuant to the credit agreement, provided there is no event of default existing, the Company may declare and pay cash dividends on shares of its common stock and its preferred stock, and may repurchase shares of its common stock and its preferred stock (i) in an unlimited amount if, at the time such dividend or repurchase is made, the Company’s Total Net Leverage ratio is 3.5 to 1.00 or less or (ii) in an aggregate amount in any fiscal year not to exceed the greater of (x) $200 or (y) 50% of free cash flow, which is operating cash flows less capital expenditures, for the prior fiscal year, commencing with the fiscal year ending December 31, 2022.

Secured Borrowings and Collateral

In 2022 and 2021, we entered into secured loan agreements with various financial institutions where we sold finance receivables and rights to payments under our equipment on operating leases to special purpose entities (SPEs). The purchases by the SPEs were funded through amortizing secured loans to the SPEs from the financial institutions. The loans have variable interest rates and expected lives of approximately 2.5 years, with half projected to be repaid within the first year based on collections of the underlying portfolio of receivables. For certain loans, we entered into interest rate hedge agreements to either fix or cap the interest rate 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 fully consolidate the SPEs in our financial statements. 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 secured assets and obligations held by the SPEs, which are included in our Condensed Consolidated Balance Sheets.


	September 30, 2022
	Finance Receivables, Net(1)		Equipment on Operating Leases, Net		Secured Debt(2)		Interest Rate		Expected Maturity
U.S.
January 2022	$	595	$	—	$	474	4.30	%	2024
September 2021	209		5		168		1.78	%	2024
Total	804		5		642

Canada
April 2022	73		0		65		3.32	%	2025






Total	$	877	$	5	$	707


	December 31, 2021
	Finance Receivables, Net(1)		Equipment on Operating Leases, Net		Secured Debt(2)		Interest Rate		Expected Maturity
U.S.
September 2021	$	308	$	8	$	293	1.40	%	2024
December 2020	380		—		267		1.74	%	2023










Total	$	688	$	8	$	560

_____________

(1)Includes (i) Billed portion of finance receivables, net (ii) Finance receivables, net and (iii) Finance receivables due after one year, net as included in the condensed consolidated balance sheets as of September 30, 2022 and December 31, 2021.

(2)Net of debt issuance costs of $2 and $1 as of September 30, 2022 and December 31, 2021, respectively.

Interest Expense and Income

Interest expense and income were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Interest expense(1)(2)	$	49	$	52	$	151	$	156
Interest income(3)	55		56		164		169

____________

(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 $21 for the three months ended September 30, 2022 and 2021, respectively, and $59 and $60 for the nine months ended September 30, 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.

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.

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Derivative Instruments and Hedging Activities Disclosure [Abstract]

Financial Instruments

9 Months Ended

Sep. 30, 2022

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.

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 September 30, 2022 and December 31, 2021, we had outstanding forward exchange and purchased option contracts with gross notional values of $1,201 and $1,113 respectively, with terms of less than 12 months. Approximately 83% of the contracts at September 30, 2022 mature within three months, 8% mature in three to six months and 9% 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 was $21 and $3 as of September 30, 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	September 30, 2022		December 31, 2021
Derivatives Designated as Hedging Instruments
Foreign exchange contracts - forwards	Other current assets	$	6	$	3
	Accrued expenses and other current liabilities	(27)		(6)

Interest rate cap	Other long-term assets	5		1
Interest rate swap	Other long-term assets	1		—

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

Derivatives NOT Designated as Hedging Instruments
Foreign exchange contracts – forwards	Other current assets	$	5	$	1
	Accrued expenses and other current liabilities	(8)		(5)
	Net undesignated derivative liabilities	$	(3)	$	(4)

Summary of Derivatives	Total Derivative assets	$	17	$	5
	Total Derivative liabilities	(35)		(11)
	Net Derivative liabilities	$	(18)	$	(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 September 30,				Nine Months Ended September 30,
Loss on Derivative Instruments	2022		2021		2022		2021




Cash Flow Hedges - Foreign Exchange Forward Contracts and Options
Derivative loss recognized in OCI (effective portion)	$	(3)	$	3	$	(41)	$	(9)
Derivative loss reclassified from AOCL to income - Cost of sales (effective portion)	(11)		(2)		(17)		(5)

During the nine months ended September 30, 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 September 30, 2022, a net after-tax loss of $21 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 September 30,				Nine Months Ended September 30,
		2022		2021		2022		2021
Foreign exchange contracts – forwards	Other expense – Currency gains (losses), net	$	1	$	2	$	(22)	$	(20)

Currency losses, net were $1 and $3 for the three months ended September 30, 2022 and 2021, respectively, and $2 and $6 for nine months ended September 30, 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.

Fair Value of Financial Assets and Liabilities

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value of Financial Assets and Liabilities

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


	September 30, 2022		December 31, 2021
Assets
Foreign exchange contracts - forwards	$	11	$	4

Interest rate cap	5		1
Interest rate swap	1		—

Deferred compensation plan investments in mutual funds	15		18
Total	$	32	$	23
Liabilities
Foreign exchange contracts - forwards	$	35	$	11



Deferred compensation plan liabilities	14		18
Total	$	49	$	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:


	September 30, 2022				December 31, 2021
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Cash and cash equivalents	$	932	$	932	$	1,840	$	1,840
Accounts receivable, net	835		835		818		818
Short-term debt and current portion of long-term debt	1,070		1,066		650		653
Long-term Debt
Xerox Holdings Corporation	1,496		1,280		1,494		1,579
Xerox Corporation	894		730		1,892		1,987
Xerox - Other Subsidiaries(1)	286		286		210		210
Long-term debt	$	2,676	$	2,296	$	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.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Employee Benefit Plans

9 Months Ended

Sep. 30, 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 September 30,
	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	$	—	$	—
Interest cost	24		19		32		23		2		2
Expected return on plan assets	(22)		(29)		(58)		(53)		—		—
Recognized net actuarial loss (gain)	3		4		6		15		(1)		—
Amortization of prior service credit	—		—		1		—		(4)		(16)
Recognized settlement loss	10		13		—		—		—		—

Defined benefit plans	15		7		(15)		(10)		(3)		(14)
Defined contribution plans	5		—		3		5		n/a		n/a
Net Periodic Benefit Cost (Credit)	20		7		(12)		(5)		(3)		(14)

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income:
Net actuarial loss (gain)(1)	27		(14)		1		—		(13)		1
Prior service credit	—		—		—		—		(10)		—
Amortization of net actuarial (loss) gain	(13)		(17)		(6)		(15)		1		—
Amortization of net prior service credit	—		—		(1)		—		4		16

Total Recognized in Other Comprehensive (Loss) Income(2)	14		(31)		(6)		(15)		(18)		17
Total Recognized in Net Periodic Benefit Cost (Credit) and Other Comprehensive (Loss) Income	$	34	$	(24)	$	(18)	$	(20)	$	(21)	$	3

	Nine Months Ended September 30,
	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	$	1	$	1	$	12	$	15	$	1	$	1
Interest cost	68		56		94		67		6		6
Expected return on plan assets	(73)		(84)		(172)		(157)		—		—
Recognized net actuarial loss (gain)	10		13		18		44		(2)		—
Amortization of prior service credit	—		(1)		1		—		(11)		(49)
Recognized settlement loss	43		41		—		—		—		—

Defined benefit plans	49		26		(47)		(31)		(6)		(42)
Defined contribution plans	15		—		11		15		n/a		n/a
Net Periodic Benefit Cost (Credit)	64		26		(36)		(16)		(6)		(42)

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income:
Net actuarial loss (gain)(1)	34		(83)		32		1		(20)		3
Prior service cost (credit)	—		—		48		—		(33)		—
Amortization of net actuarial (loss) gain	(53)		(54)		(18)		(44)		2		—
Amortization of prior service credit	—		1		(1)		—		11		49

Total Recognized in Other Comprehensive (Loss) Income(2)	(19)		(136)		61		(43)		(40)		52
Total Recognized in Net Periodic Benefit Cost (Credit) and Other Comprehensive (Loss) Income	$	45	$	(110)	$	25	$	(59)	$	(46)	$	10

_____________

(1)The 2022 and 2021 net actuarial loss (gain) for U.S. Pension Plans primarily reflects (i) the remeasurement of our primary U.S. pension plans as a result of the payment of periodic settlements and (ii) adjustments for the actuarial valuation results based on the January 1st plan census data. The 2022 net actuarial loss for Non-U.S. Plans reflects the remeasurement related to the second quarter 2022 Pension Plan amendment for our UK Defined Benefit Pension Plan..The 2022 net actuarial gain for Retiree Health plans reflect remeasurements related to the first and third quarter 2022 Plan Amendments for our U.S. Plan.

(2)Amounts represent the pre-tax effect included within Other Comprehensive (Loss) Income. Refer to Note 20 - 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:


	Nine Months Ended September 30,				Year Ended December 31,
	2022		2021		Estimated 2022		2021
U.S. plans	$	18	$	18	$	25	$	24
Non-U.S. plans	75		84		95		111
Total Pension plans	93		102		120		135
Retiree Health	13		17		25		25
Total Retirement plans	$	106	$	119	$	145	$	160

There are no mandatory contributions required in 2022 for our U.S. tax-qualified defined benefit plans to meet the minimum funding requirements. In addition, further contributions to our U.K. defined benefit pension plan are not required after October 2022 following agreement of the triennial valuation of the Plan with the Plan Trustees.

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.

During the third quarter of 2022, we further amended our U.S. Retiree Health Plan to eliminate Retiree Flex benefits for certain union employees as a result of contract negotiations. This negative plan amendment resulted in a reduction of approximately $10 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.

Pension Plan Amendment

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 amendment resulted in an increase of approximately $48 in the projected benefit obligation (PBO) for this plan (approximately 1.4% of the plan PBO as of December 31, 2021). 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 resulted in an additional actuarial loss of $31. 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.

The entire disclosure for retirement benefits.

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Shareholders' Equity of Xerox Holdings

9 Months Ended

Sep. 30, 2022

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 June 30, 2022	$	155	$	1,564	$	—	$	5,484	$	(3,330)	$	3,873	$	9	$	3,882

Comprehensive (loss) income, net	—		—		—		(383)		(217)		(600)		1		(599)
Cash dividends declared - common(3)	—		—		—		(40)		—		(40)		—		(40)
Cash dividends declared - preferred(4)	—		—		—		(4)		—		(4)		—		(4)


Stock option and incentive plans, net	1		13		—		—		—		14		—		14




Investment from noncontrolling interests	—		—		—		—		—		—		1		1
Balance at September 30, 2022	$	156	$	1,577	$	—	$	5,057	$	(3,547)	$	3,243	$	11	$	3,254


	Common Stock(1)		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL(2)		Xerox Holdings Shareholders’ Equity		Non- controlling Interests		Total Equity
Balance at June 30, 2021	$	189	$	2,214	$	(159)	$	6,308	$	(3,265)	$	5,287	$	8	$	5,295

Comprehensive income (loss), net	—		—		—		90		(70)		20		(1)		19
Cash dividends declared - common(3)	—		—		—		(46)		—		(46)		—		(46)
Cash dividends declared - preferred(4)	—		—		—		(4)		—		(4)		—		(4)


Stock option and incentive plans, net	—		14		—		—		—		14		—		14

Payments to acquire treasury stock, including fees	—		—		(87)		—		—		(87)		—		(87)
Cancellation of treasury stock	(7)		(152)		159		—		—		—		—		—

Other	—		4		—		—		—		4		—		4
Balance at September 30, 2021	$	182	$	2,080	$	(87)	$	6,348	$	(3,335)	$	5,188	$	7	$	5,195


	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	—		—		—		(443)		(559)		(1,002)		(1)		(1,003)
Cash dividends declared - common(3)	—		—		—		(120)		—		(120)		—		(120)
Cash dividends declared - preferred(4)	—		—		—		(11)		—		(11)		—		(11)


Stock option and incentive plans, net	2		51		—		—		—		53		—		53

Payments to acquire treasury stock, including fees	—		—		(113)		—		—		(113)		—		(113)
Cancellation of treasury stock	(14)		(276)		290		—		—		—		—		—
Investment from noncontrolling interests	—		—		—		—		—		—		6		6
Distributions to noncontrolling interests	—		—		—		—		—		—		(1)		(1)

Balance at September 30, 2022	$	156	$	1,577	$	—	$	5,057	$	(3,547)	$	3,243	$	11	$	3,254


	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	—		—		—		220		(3)		217		(1)		216
Cash dividends declared - common(3)	—		—		—		(142)		—		(142)		—		(142)
Cash dividends declared - preferred(4)	—		—		—		(11)		—		(11)		—		(11)


Stock option and incentive plans, net	1		30		—		—		—		31		—		31

Payments to acquire treasury stock, including fees	—		—		(500)		—		—		(500)		—		(500)
Cancellation of treasury stock	(17)		(396)		413		—		—		—		—		—
Investment from noncontrolling interests	—		1		—		—		—		1		4		5

Balance at September 30, 2021	$	182	$	2,080	$	(87)	$	6,348	$	(3,335)	$	5,188	$	7	$	5,195

_____________

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

(2)Refer to Note 20 - Other Comprehensive (Loss) Income for the components of AOCL.

(3)Cash dividends declared on common stock for the three and nine months ended September 30, 2022 and 2021 were $0.25 per share, respectively, and $0.75 per share, respectively.

(4)Cash dividends declared on preferred stock for the three and nine months ended September 30, 2022 and 2021 were $20.00 per share, respectively, and $60.00 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
Stock based compensation plans, net	116	—

Cancellation of Treasury stock	(1,508)	(1,508)
Balance at June 30, 2022	154,966	—
Stock based compensation plans, net	604	—


Balance at September 30, 2022	155,570	—

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 June 30, 2022	$	3,630	$	3,820	$	(3,330)	$	4,120	$	9	$	4,129
Comprehensive (loss) income, net	—		(383)		(217)		(600)		1		(599)


Dividends declared to parent	—		(49)		—		(49)		—		(49)

Transfers from parent	13		—		—		13		—		13



Investment from noncontrolling interests	—		—		—		—		1		1





Balance at September 30, 2022	$	3,643	$	3,388	$	(3,547)	$	3,484	$	11	$	3,495


	Additional Paid-in Capital		Retained Earnings		AOCL(1)		Xerox Shareholder's Equity		Non- controlling Interests		Total Equity
Balance at June 30, 2021	$	3,413	$	5,405	$	(3,265)	$	5,553	$	8	$	5,561

Comprehensive income (loss), net	—		90		(70)		20		(1)		19


Dividends declared to parent	—		(215)		—		(215)		—		(215)

Transfers from parent	96		—		—		96		—		96








Balance at September 30, 2021	$	3,509	$	5,280	$	(3,335)	$	5,454	$	7	$	5,461


	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	—		(443)		(559)		(1,002)		(1)		(1,003)


Dividends declared to parent	—		(645)		—		(645)		—		(645)

Transfers from parent	441		—		—		441		—		441






Investment from noncontrolling interests	—		—		—		—		6		6
Distributions to noncontrolling interests	—		—		—		—		(1)		(1)
Balance at September 30, 2022	$	3,643	$	3,388	$	(3,547)	$	3,484	$	11	$	3,495


	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	—		220		(3)		217		(1)		216


Dividends declared to parent	—		(774)		—		(774)		—		(774)
Intercompany loan capitalization(2)	(1,494)		—		—		(1,494)		—		(1,494)
Transfers from parent	114		—		—		114		—		114

Investment from noncontrolling interests	1		—		—		1		4		5

Balance at September 30, 2021	$	3,509	$	5,280	$	(3,335)	$	5,454	$	7	$	5,461

_____________

(1)Refer to Note 20 - Other Comprehensive (Loss) Income for the components of AOCL.

(2)Refer to Note 13 - Debt for information regarding capitalization of balance to Intercompany Loan with Xerox Holdings Corporation.

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.

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Shareholder's Equity of Xerox

9 Months Ended

Sep. 30, 2022

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 June 30, 2022	$	155	$	1,564	$	—	$	5,484	$	(3,330)	$	3,873	$	9	$	3,882

Comprehensive (loss) income, net	—		—		—		(383)		(217)		(600)		1		(599)
Cash dividends declared - common(3)	—		—		—		(40)		—		(40)		—		(40)
Cash dividends declared - preferred(4)	—		—		—		(4)		—		(4)		—		(4)


Stock option and incentive plans, net	1		13		—		—		—		14		—		14




Investment from noncontrolling interests	—		—		—		—		—		—		1		1
Balance at September 30, 2022	$	156	$	1,577	$	—	$	5,057	$	(3,547)	$	3,243	$	11	$	3,254


	Common Stock(1)		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL(2)		Xerox Holdings Shareholders’ Equity		Non- controlling Interests		Total Equity
Balance at June 30, 2021	$	189	$	2,214	$	(159)	$	6,308	$	(3,265)	$	5,287	$	8	$	5,295

Comprehensive income (loss), net	—		—		—		90		(70)		20		(1)		19
Cash dividends declared - common(3)	—		—		—		(46)		—		(46)		—		(46)
Cash dividends declared - preferred(4)	—		—		—		(4)		—		(4)		—		(4)


Stock option and incentive plans, net	—		14		—		—		—		14		—		14

Payments to acquire treasury stock, including fees	—		—		(87)		—		—		(87)		—		(87)
Cancellation of treasury stock	(7)		(152)		159		—		—		—		—		—

Other	—		4		—		—		—		4		—		4
Balance at September 30, 2021	$	182	$	2,080	$	(87)	$	6,348	$	(3,335)	$	5,188	$	7	$	5,195


	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	—		—		—		(443)		(559)		(1,002)		(1)		(1,003)
Cash dividends declared - common(3)	—		—		—		(120)		—		(120)		—		(120)
Cash dividends declared - preferred(4)	—		—		—		(11)		—		(11)		—		(11)


Stock option and incentive plans, net	2		51		—		—		—		53		—		53

Payments to acquire treasury stock, including fees	—		—		(113)		—		—		(113)		—		(113)
Cancellation of treasury stock	(14)		(276)		290		—		—		—		—		—
Investment from noncontrolling interests	—		—		—		—		—		—		6		6
Distributions to noncontrolling interests	—		—		—		—		—		—		(1)		(1)

Balance at September 30, 2022	$	156	$	1,577	$	—	$	5,057	$	(3,547)	$	3,243	$	11	$	3,254


	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	—		—		—		220		(3)		217		(1)		216
Cash dividends declared - common(3)	—		—		—		(142)		—		(142)		—		(142)
Cash dividends declared - preferred(4)	—		—		—		(11)		—		(11)		—		(11)


Stock option and incentive plans, net	1		30		—		—		—		31		—		31

Payments to acquire treasury stock, including fees	—		—		(500)		—		—		(500)		—		(500)
Cancellation of treasury stock	(17)		(396)		413		—		—		—		—		—
Investment from noncontrolling interests	—		1		—		—		—		1		4		5

Balance at September 30, 2021	$	182	$	2,080	$	(87)	$	6,348	$	(3,335)	$	5,188	$	7	$	5,195

_____________

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

(2)Refer to Note 20 - Other Comprehensive (Loss) Income for the components of AOCL.

(3)Cash dividends declared on common stock for the three and nine months ended September 30, 2022 and 2021 were $0.25 per share, respectively, and $0.75 per share, respectively.

(4)Cash dividends declared on preferred stock for the three and nine months ended September 30, 2022 and 2021 were $20.00 per share, respectively, and $60.00 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
Stock based compensation plans, net	116	—

Cancellation of Treasury stock	(1,508)	(1,508)
Balance at June 30, 2022	154,966	—
Stock based compensation plans, net	604	—


Balance at September 30, 2022	155,570	—

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 June 30, 2022	$	3,630	$	3,820	$	(3,330)	$	4,120	$	9	$	4,129
Comprehensive (loss) income, net	—		(383)		(217)		(600)		1		(599)


Dividends declared to parent	—		(49)		—		(49)		—		(49)

Transfers from parent	13		—		—		13		—		13



Investment from noncontrolling interests	—		—		—		—		1		1





Balance at September 30, 2022	$	3,643	$	3,388	$	(3,547)	$	3,484	$	11	$	3,495


	Additional Paid-in Capital		Retained Earnings		AOCL(1)		Xerox Shareholder's Equity		Non- controlling Interests		Total Equity
Balance at June 30, 2021	$	3,413	$	5,405	$	(3,265)	$	5,553	$	8	$	5,561

Comprehensive income (loss), net	—		90		(70)		20		(1)		19


Dividends declared to parent	—		(215)		—		(215)		—		(215)

Transfers from parent	96		—		—		96		—		96








Balance at September 30, 2021	$	3,509	$	5,280	$	(3,335)	$	5,454	$	7	$	5,461


	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	—		(443)		(559)		(1,002)		(1)		(1,003)


Dividends declared to parent	—		(645)		—		(645)		—		(645)

Transfers from parent	441		—		—		441		—		441






Investment from noncontrolling interests	—		—		—		—		6		6
Distributions to noncontrolling interests	—		—		—		—		(1)		(1)
Balance at September 30, 2022	$	3,643	$	3,388	$	(3,547)	$	3,484	$	11	$	3,495


	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	—		220		(3)		217		(1)		216


Dividends declared to parent	—		(774)		—		(774)		—		(774)
Intercompany loan capitalization(2)	(1,494)		—		—		(1,494)		—		(1,494)
Transfers from parent	114		—		—		114		—		114

Investment from noncontrolling interests	1		—		—		1		4		5

Balance at September 30, 2021	$	3,509	$	5,280	$	(3,335)	$	5,454	$	7	$	5,461

_____________

(1)Refer to Note 20 - Other Comprehensive (Loss) Income for the components of AOCL.

(2)Refer to Note 13 - Debt for information regarding capitalization of balance to Intercompany Loan with Xerox Holdings Corporation.

Other Comprehensive (Loss) Income

Stock-Based Compensation	9 Months Ended
Stock-Based Compensation	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation Stock-based compensation expense of $63 for the nine months ended September 30, 2022 reflects $21 of accelerated expense associated with the vesting of all outstanding equity awards, according to the terms of the award agreement, in connection with the passing of Xerox Holding's former CEO. Stock Options – CareAR Holdings, LLC In September 2021, Xerox Holdings Corporation announced the formation of CareAR Holdings, which consolidates CareAR, Inc., Docushare® and XMPie under a single holding company named CareAR Holdings (CareAR). In March 2022, the CareAR Holdings, LLC Board approved the CareAR 2022 Equity Compensation Plan (the “Plan”) and authorized the issuance of 105 thousand stock options (SOs) to certain executives and employees of Xerox and CareAR. Compensation expense of $30 associated with 90 thousand SOs currently awarded under the Plan is based upon the grant date fair value, as determined by utilizing a Black-Scholes option-pricing model and is expected to be recorded on a straight-line basis over 4.7 years, based on the vesting period and management’s estimate of the number of SOs expected to vest. SOs vest on an annual, graduated schedule beginning January 2023 through January 2027 as follows: 10% in January 2023 and 2024, respectively, 20% in January 2025 and 2026, respectively, and 40% in January 2027 based upon continued service. Options granted under the Plan are subject to terms and conditions as determined by the CareAR Board and become vested and exercisable at any time subsequent to the scheduled vesting dates and may expire 90 days or one year from employee termination, depending on cause, but in no event later than ten years from the May 2022 grant date. The terms of the awards also include certain provisions that allow for the immediate vesting in the event of a sale of the entity.

Other Comprehensive (Loss) Income

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

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


	Three Months Ended September 30,								Nine Months Ended September 30,
	2022				2021				2022				2021
	Pre-tax		Net of Tax		Pre-tax		Net of Tax		Pre-tax		Net of Tax		Pre-tax		Net of Tax
Translation Adjustments Losses	$	(280)	$	(277)	$	(129)	$	(125)	$	(646)	$	(636)	$	(126)	$	(122)
Unrealized (Losses) Gains
Changes in fair value of cash flow hedges (losses) gains	(3)		(3)		3		2		(41)		(32)		(9)		(7)
Changes in cash flow hedges reclassed to earnings(1)	11		9		2		2		17		13		5		4

Net Unrealized Gains (Losses)	8		6		5		4		(24)		(19)		(4)		(3)

Defined Benefit Plans (Losses) Gains
Net actuarial/prior service (losses) gains	(5)		(4)		13		10		(61)		(47)		79		59
Prior service amortization(2)	(3)		(3)		(16)		(12)		(10)		(8)		(50)		(37)
Actuarial loss amortization/settlement(2)	18		14		32		23		69		52		98		72

Other gains(3)	47		47		30		30		99		99		28		28
Changes in Defined Benefit Plans Gains	57		54		59		51		97		96		155		122



Other Comprehensive (Loss) Income Attributable to Xerox Holdings/Xerox	$	(215)	$	(217)	$	(65)	$	(70)	$	(573)	$	(559)	$	25	$	(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:


	September 30, 2022		December 31, 2021
Cumulative translation adjustments	$	(2,497)	$	(1,861)
Other unrealized losses, net	(21)		(2)
Benefit plans net actuarial losses and prior service credits	(1,029)		(1,125)
Total Accumulated Other Comprehensive Loss Attributable to Xerox Holdings/Xerox	$	(3,547)	$	(2,988)

(Loss) Earnings per Share

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

(Loss) Earnings per Share

(shares in thousands)

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Basic (Loss) Earnings per Share
Net (Loss) Income Attributable to Xerox Holdings	$	(383)	$	90	$	(443)	$	220
Accrued dividends on preferred stock	(4)		(4)		(11)		(11)


Adjusted Net (loss) income available to common shareholders	$	(387)	$	86	$	(454)	$	209

Weighted average common shares outstanding(1)	155,697		179,408		155,799		187,549




Basic (Loss) Earnings per Share	$	(2.48)	$	0.48	$	(2.91)	$	1.12

Diluted (Loss) Earnings per Share
Net (Loss) Income Attributable to Xerox Holdings	$	(383)	$	90	$	(443)	$	220
Accrued dividends on preferred stock	(4)		(4)		(11)		(11)


Adjusted Net (loss) income available to common shareholders	$	(387)	$	86	$	(454)	$	209

Weighted average common shares outstanding(1)	155,697		179,408		155,799		187,549
Common shares issuable with respect to:
Stock options	—		—		—		—
Restricted stock and performance shares	—		2,168		—		2,120
Convertible preferred stock	—		—		—		—

Adjusted weighted average common shares outstanding	155,697		181,576		155,799		189,669




Diluted (Loss) Earnings per Share	$	(2.48)	$	0.48	$	(2.91)	$	1.10

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	598		622		598		622
Restricted stock and performance shares	5,222		4,387		5,222		4,435
Convertible preferred stock	6,742		6,742		6,742		6,742
Total Anti-Dilutive Securities	12,562		11,751		12,562		11,799

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

____________

(1)Includes unissued shares associated with the accelerated share vesting since all contingencies regarding issuance have lapsed.

Contingencies and Litigation

9 Months Ended

Sep. 30, 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:


	September 30, 2022		December 31, 2021
Tax contingency - unreserved	$	331	$	292
Escrow cash deposits	35		32
Surety bonds	75		96
Letters of credit	66		74
Liens on Brazilian assets	—		—

The increase in the unreserved portion of the tax contingency, inclusive of any related interest, was primarily due to interest and currency. With respect to the unreserved tax contingency, the majority has been assessed by management as being remote as to the likelihood of ultimately resulting in a loss to the Company. In connection with the above proceedings, customary local regulations may require us to make escrow cash deposits or post other security of up to half of the total amount in dispute, as well as, additional surety bonds and letters of credit, which include associated indexation. Generally, any escrowed amounts would be refundable and any liens on assets would be removed to the extent the matters are resolved in our favor. We are also involved in certain disputes with contract and former employees. Exposures related to labor matters are not material to the financial statements as of September 30, 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

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. The Court subsequently granted plaintiff’s unopposed motion to consolidate 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.

Defendants moved to dismiss in August 2020, and the Court granted defendants’ motions and dismissed the action in its entirety, on December 14, 2020. Plaintiffs appealed the dismissal of the case to the Appellate Division, First Department. On November 18, 2021, the Appellate Division issued its decision and 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 Court subsequently stayed 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 seeking dismissal of all claims against them. 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 all pending motions took place on July 5, 2022. After hearing from all parties on the various motions, the Court denied without prejudice the Special Litigation Committee's motion to dismiss, the Icahn defendants' motion for summary judgment and the plaintiffs' cross-motion for summary judgment. The Court also granted the plaintiffs limited discovery to be completed within 60 days.

On September 30, 2022, the Special Litigation Committee, the Icahn Defendants and plaintiffs filed supplemental briefs in support of the Special Litigation Committee’s renewed motion to dismiss and/or for summary judgment and the Icahn Defendants’ renewed motion for summary judgment. The parties filed response briefs on October 24, 2022. Oral argument on the motions is scheduled for November 28, 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 $253 of guarantees as of September 30, 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.

Recent Accounting Pronouncements (Policies)	9 Months Ended
Recent Accounting Pronouncements (Policies)	Sep. 30, 2022
Accounting Standards Update and Change in Accounting Principle [Abstract]
Accounting Standard Updates to be Adopted	Accounting Standard Updates to be Adopted: Liabilities In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations that requires entities that use supplier finance programs in connection with the purchase of goods and services to disclose the key terms of the programs and information about obligations outstanding at the end of the reporting period, including a rollforward of those obligations. The guidance does not affect the recognition, measurement or financial statement presentation of supplier finance program obligations. The new standard’s requirements to disclose the key terms of the programs and information about obligations outstanding are effective for all interim and annual periods of our fiscal year beginning on January 1, 2023. The new standard’s requirement to disclose a rollforward of obligations outstanding will be effective for our fiscal year beginning on January 1, 2024. Early adoption is permitted. We are currently evaluating the impact of the adoption of this standard on the Company's consolidated financial statements and related disclosures. 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 disclosure of current-period gross write-offs by year of origination 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. 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. Since this standard primarily relates to new disclosure, we do not expect the adoption to have a material impact on our financial condition, results of operations, and cash flows in future periods. 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 and the adoption has not had a material impact on acquisitions made year to 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: •Fair Value Measurement: ASU 2022-03, Fair Value Measurement (Topic 820), Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. This update is effective for our fiscal year beginning January 1, 2024. •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 (Subtopic 470-50), 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 was 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 ten years and a variety of renewal and/or termination options.

Revenue (Tables)

9 Months Ended

Sep. 30, 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 September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Primary geographical markets(1):
United States	$	986	$	1,012	$	2,918	$	3,001
Europe	470		487		1,403		1,500
Canada	131		97		381		294
Other	164		162		464		466
Total Revenues	$	1,751	$	1,758	$	5,166	$	5,261

Major product and services lines:
Equipment	$	390	$	387	$	1,070	$	1,197
Supplies, paper and other sales	300		270		879		732
Maintenance agreements(2)	420		447		1,295		1,330
Service arrangements(3)	487		493		1,451		1,490
Rental and other	103		106		315		346
Financing	51		55		156		166

Total Revenues	$	1,751	$	1,758	$	5,166	$	5,261

Sales channels:

Direct equipment lease(4)	$	146	$	170	$	425	$	506
Distributors & resellers(5)	318		283		877		826
Customer direct	226		204		647		597
Total Sales	$	690	$	657	$	1,949	$	1,929

_____________

(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 September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Incremental direct costs of obtaining a contract	$	15	$	14	$	43	$	44
Amortization of incremental direct costs	17		18		51		55

Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Schedule of Segment Reporting Information

Selected financial information for our reportable segments was as follows:


	Three Months Ended September 30,
	2022									2021
	Print and Other			Financing (FITTLE)			Total			Print and Other			Financing (FITTLE)			Total
External net revenue	$	1,604		$	147		$	1,751		$	1,590		$	168		$	1,758
Intersegment net revenue(1)	37			3			40			46			3			49
Total Segment net revenue	$	1,641		$	150		$	1,791		$	1,636		$	171		$	1,807

Segment profit	$	57		$	8		$	65		$	50		$	24		$	74
Segment margin(2)	3.6		%	5.4		%	3.7		%	3.1		%	14.3		%	4.2		%

Depreciation and amortization	$	28		$	27		$	55		$	28		$	38		$	66


Interest income	—			51			51			—			55			55
Interest expense(3)	—			30			30			—			31			31


	Nine Months Ended September 30,
	2022									2021
	Print and Other			Financing (FITTLE)			Total			Print and Other			Financing (FITTLE)			Total
External net revenue	$	4,716		$	450		$	5,166		$	4,742		$	519		$	5,261
Intersegment net revenue(1)	108			9			117			147			9			156
Total Segment net revenue	$	4,824		$	459		$	5,283		$	4,889		$	528		$	5,417

Segment profit	$	55		$	42		$	97		$	232		$	57		$	289
Segment margin(2)	1.2		%	9.3		%	1.9		%	4.9		%	11.0		%	5.5		%

Depreciation and amortization	$	85		$	89		$	174		$	86		$	121		$	207


Interest income	—			156			156			—			166			166
Interest expense(3)	—			84			84			—			91			91

_____________

(1)Intersegment net revenue is primarily commissions and other payments made by the Financing (FITTLE) 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 September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021





Pre-tax (Loss) Income
Total reported segments	$	65	$	74	$	97	$	289
Goodwill impairment	(412)		—		(412)		—
Restructuring and related costs, net	(22)		(10)		(41)		(39)
Amortization of intangible assets	(10)		(13)		(31)		(42)
Accelerated share vesting	—		—		(21)		—
Other expenses, net	(1)		33		(66)		28
Total Pre-tax (loss) income	$	(380)	$	84	$	(474)	$	236

Depreciation and Amortization
Total reported segments	$	55	$	66	$	174	$	207
Amortization of intangible assets	10		13		31		42
Total Depreciation and amortization	$	65	$	79	$	205	$	249

Interest Expense
Total reported segments	$	30	$	31	$	84	$	91
Corporate	19		21		67		65
Total Interest expense	$	49	$	52	$	151	$	156

Interest Income
Total reported segments	$	51	$	55	$	156	$	166
Corporate	4		1		8		3
Total Interest income	$	55	$	56	$	164	$	169

Lessor (Tables)

9 Months Ended

Sep. 30, 2022

Schedule of Components of Lease Income

The components of lease income are as follows:


		Three Months Ended September 30,				Nine Months Ended September 30,
	Location in Statements of (Loss) Income	2022		2021		2022		2021
Revenue from sales type leases	Sales	$	146	$	170	$	425	$	506


Interest income on lease receivables	Financing	51		55		156		166


Lease income - operating leases	Services, maintenance and rentals	40		54		132		172
Variable lease income	Services, maintenance and rentals	16		15		47		46
Total Lease income		$	253	$	294	$	760	$	890

Schedule of Components of Lease Income

The components of lease income are as follows:


		Three Months Ended September 30,				Nine Months Ended September 30,
	Location in Statements of (Loss) Income	2022		2021		2022		2021
Revenue from sales type leases	Sales	$	146	$	170	$	425	$	506


Interest income on lease receivables	Financing	51		55		156		166


Lease income - operating leases	Services, maintenance and rentals	40		54		132		172
Variable lease income	Services, maintenance and rentals	16		15		47		46
Total Lease income		$	253	$	294	$	760	$	890

Schedule of Components of Lease Income

The components of lease income are as follows:


		Three Months Ended September 30,				Nine Months Ended September 30,
	Location in Statements of (Loss) Income	2022		2021		2022		2021
Revenue from sales type leases	Sales	$	146	$	170	$	425	$	506


Interest income on lease receivables	Financing	51		55		156		166


Lease income - operating leases	Services, maintenance and rentals	40		54		132		172
Variable lease income	Services, maintenance and rentals	16		15		47		46
Total Lease income		$	253	$	294	$	760	$	890

Supplementary Financial Information (Tables)

9 Months Ended

Sep. 30, 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 September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021

Cost of services, maintenance and rentals	$	—	$	4	$	—	$	17

Selling, administrative and general expenses	—		5		—		12
Total Estimated savings	$	—	$	9	$	—	$	29

Schedule of Restricted Cash

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


	September 30, 2022		December 31, 2021
Cash and cash equivalents	$	932	$	1,840
Restricted cash
Litigation deposits in Brazil	37		34
Escrow and cash collections related to secured borrowing arrangements(1)	31		32
Other restricted cash	1		3
Total Restricted cash	69		69
Cash, cash equivalents and restricted cash	$	1,001	$	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:


	September 30, 2022		December 31, 2021
Other current assets	$	31	$	33
Other long-term assets	38		36
Total Restricted cash	$	69	$	69

Schedule Cash Flow Information

Summarized cash flow information is as follows:


	Location in Statement of Cash Flows	Nine Months Ended September 30,
			2022		2021
Provision for receivables	Operating		$	25	$	13
Provision for inventory	Operating		23		25
Provision for product warranties	Operating		5		6
Depreciation of buildings and equipment	Operating		51		57
Depreciation and obsolescence of equipment on operating leases	Operating		89		120
Amortization of internal use software	Operating		34		30

Amortization of acquired intangible assets	Operating		31		42
Amortization of customer contract costs(1)	Operating		55		60
Cost of additions to land, buildings and equipment	Investing		24		21
Cost of additions to internal use software	Investing		15		31
Payments to acquire noncontrolling interests	Investing		13		3
Common stock dividends - Xerox Holdings	Financing		120		146
Preferred stock dividends - Xerox Holdings	Financing		11		11


Payments to noncontrolling interests	Financing		1		—
Proceeds from noncontrolling interests	Financing		6		15
Repurchases related to stock-based compensation - Xerox Holdings	Financing		10		14

_____________

Accounts Receivable, Net (Tables)

9 Months Ended

Sep. 30, 2022

Schedule of Accounts Receivable, Net

Accounts receivable, net were as follows:


	September 30, 2022		December 31, 2021
Invoiced	$	679	$	660
Accrued(1)	207		216
Allowance for doubtful accounts	(51)		(58)
Accounts receivable, net	$	835	$	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
Provision	3		1
Charge-offs	(2)		(2)
Recoveries and other(1)	(1)		1
Balance at June 30th	63		68
Provision	(1)		0
Charge-offs	(5)		(5)
Recoveries and other(1)	(6)		(1)
Balance at September 30th	$	51	$	62

_____________

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

Schedule of Accounts Receivables Sales

Accounts receivable sales activity was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Accounts receivable sales(1)	$	164	$	127	$	400	$	359

____________

Finance Receivables, Net (Tables)

9 Months Ended

Sep. 30, 2022

Schedule of Finance Receivables

Finance receivables, net were as follows:


	September 30, 2022		December 31, 2021
Gross receivables	$	3,368	$	3,568
Unearned income	(351)		(380)
Subtotal	3,017		3,188
Residual values	—		—
Allowance for doubtful accounts	(117)		(118)
Finance receivables, net	2,900		3,070
Less: Billed portion of finance receivables, net	91		94
Less: Current portion of finance receivables not billed, net	995		1,042
Finance receivables due after one year, net	$	1,814	$	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
Provision	—		1		3		4
Charge-offs	(3)		(1)		(2)		(6)
Recoveries and other(2)	—		—		(2)		(2)
Balance at June 30, 2022	75		11		30		116
Provision	6		1		2		9
Charge-offs	(4)		(1)		(1)		(6)
Recoveries and other(2)	—		—		(2)		(2)

Balance at September 30, 2022	$	77	$	11	$	29	$	117
Finance receivables as of September 30, 2022 collectively evaluated for impairment (3)	$	1,883	$	214	$	920	$	3,017

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
Provision	6		(1)		(3)		2
Charge-offs	(3)		(1)		(1)		(5)
Recoveries and other(2)	—		1		—		1
Balance at June 30, 2021	81		15		37		133
Provision	—		(3)		(1)		(4)
Charge-offs	(1)		(1)		—		(2)
Recoveries and other(2)	—		—		—		—

Balance at September 30, 2021	$	80	$	11	$	36	$	127
Finance receivables as of September 30, 2021 collectively evaluated for impairment(3)	$	1,866	$	262	$	1,074	$	3,202

_____________

(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 $117 and $127 at September 30, 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:


	September 30, 2022
	2022		2021		2020		2019		2018		Prior		Total Finance Receivables
United States (Direct)
Low Credit Risk	$	116	$	115	$	92	$	64	$	33	$	4	$	424
Average Credit Risk	53		39		30		36		11		3		172
High Credit Risk	50		76		55		21		8		3		213
Total	$	219	$	230	$	177	$	121	$	52	$	10	$	809

United States (Indirect)
Low Credit Risk	$	183	$	182	$	101	$	63	$	18	$	2	$	549
Average Credit Risk	147		169		84		46		17		1		464
High Credit Risk	18		24		11		5		3		—		61
Total	$	348	$	375	$	196	$	114	$	38	$	3	$	1,074

Canada
Low Credit Risk	$	18	$	24	$	18	$	14	$	7	$	1	$	82
Average Credit Risk	28		26		24		18		7		2		105
High Credit Risk	5		5		9		4		3		1		27
Total	$	51	$	55	$	51	$	36	$	17	$	4	$	214

EMEA(1)
Low Credit Risk	$	170	$	165	$	93	$	65	$	32	$	6	$	531
Average Credit Risk	103		104		67		48		18		3		343
High Credit Risk	11		12		10		9		3		1		46
Total	$	284	$	281	$	170	$	122	$	53	$	10	$	920







Total Finance Receivables
Low Credit Risk	$	487	$	486	$	304	$	206	$	90	$	13	$	1,586
Average Credit Risk	331		338		205		148		53		9		1,084
High Credit Risk	84		117		85		39		17		5		347
Total	$	902	$	941	$	594	$	393	$	160	$	27	$	3,017


	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:


	September 30, 2022
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Direct	$	29	$	5	$	6	$	40	$	769	$	809	$	48
Indirect	27		6		4		37		1,037		1,074		—






Total United States	56		11		10		77		1,806		1,883		48
Canada	6		1		—		7		207		214		6





EMEA(1)	8		2		1		11		909		920		11

Total	$	70	$	14	$	11	$	95	$	2,922	$	3,017	$	65

	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

Inventories and Equipment on Operating Leases, Net (Tables)

9 Months Ended

Sep. 30, 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:


	September 30, 2022		December 31, 2021
Finished goods	$	617	$	568
Work-in-process	47		43
Raw materials	113		85
Total Inventories	$	777	$	696

Schedule of Equipment on Operating Leases and Related Accumulated Depreciation

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


	September 30, 2022		December 31, 2021
Equipment on operating leases	$	1,142	$	1,266
Accumulated depreciation	(926)		(1,013)
Equipment on operating leases, net	$	216	$	253

Lessee (Tables)

9 Months Ended

Sep. 30, 2022

Schedule of Components of Lease Expense

The components of lease expense are as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Operating lease expense	$	25	$	25	$	74	$	79
Short-term lease expense	4		5		12		16
Variable lease expense(1)	12		12		37		35
Sublease income	(1)		(1)		(5)		(3)

Total Lease expense	$	40	$	41	$	118	$	127

_____________

(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:


	September 30, 2022		December 31, 2021
Other long-term assets	$	215	$	264

Accrued expenses and other current liabilities	$	71	$	79
Other long-term liabilities	160		204
Total Operating lease liabilities	$	231	$	283

Restructuring Programs (Tables)

9 Months Ended

Sep. 30, 2022

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Program Activity

Information related to our restructuring programs is summarized below:


	Severance and Related Costs		Other Contractual Termination Costs(2)		Total
Balance at December 31, 2021	$	25	$	2	$	27
Provision	22		—		22
Reversals	(3)		—		(3)
Net current period charges(1)	19		—		19
Charges against reserve and currency	(7)		—		(7)
Balance at March 31, 2022	37		2		39
Provision	22		1		23
Reversals	(1)		(1)		(2)
Net current period charges(1)	21		—		21
Charges against reserve and currency	(14)		—		(14)
Balance at June 30, 2022	44		2		46
Provision	15		—		15
Reversals	(1)		—		(1)
Net current period charges(1)	14		—		14
Charges against reserve and currency	(19)		—		(19)
Balance at September 30, 2022	$	39	$	2	$	41

______________

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

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

Schedule of Reconciliation to The Consolidated Statements of Cash Flows

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


	Nine Months Ended September 30,
		2022		2021
Charges against reserve and currency		$	(40)	$	(74)

Effects of foreign currency and other non-cash items		2		13
Restructuring cash payments		$	(38)	$	(61)

Schedule of Restructuring Related Asset Impairment Activity

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Retention related severance/bonuses(1)	$	(1)	$	7	$	(3)	$	6
Contractual severance costs	1		—		—		3
Consulting and other costs(2)	—		—		—		2
Total	$	—	$	7	$	(3)	$	11

_____________

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

Information related to our restructuring-related asset impairment activity is summarized below:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Lease right of use assets(1)	$	1	$	—	$	2	$	2
Owned assets(1)	9		—		10		10
Asset impairments	10		—		12		12
Gain on sales of owned assets(2)	(2)		—		(22)		—
Adjustments/Reversals	—		—		—		(1)
Net asset impairment charge (credit)	$	8	$	—	$	(10)	$	11

______________

(1)Primarily related to the exit and abandonment of leased and owned facilities, net of any potential sublease income and recoveries.

(2)Reflect gain on the sales of exited surplus facilities.

Debt (Tables)

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Schedule of Long-Term Debt Instruments

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


	September 30, 2022
	Finance Receivables, Net(1)		Equipment on Operating Leases, Net		Secured Debt(2)		Interest Rate		Expected Maturity
U.S.
January 2022	$	595	$	—	$	474	4.30	%	2024
September 2021	209		5		168		1.78	%	2024
Total	804		5		642

Canada
April 2022	73		0		65		3.32	%	2025






Total	$	877	$	5	$	707


	December 31, 2021
	Finance Receivables, Net(1)		Equipment on Operating Leases, Net		Secured Debt(2)		Interest Rate		Expected Maturity
U.S.
September 2021	$	308	$	8	$	293	1.40	%	2024
December 2020	380		—		267		1.74	%	2023










Total	$	688	$	8	$	560

_____________

(2)Net of debt issuance costs of $2 and $1 as of September 30, 2022 and December 31, 2021, respectively.

Schedule of Interest Income and Interest Expense Disclosure

Interest expense and income were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Interest expense(1)(2)	$	49	$	52	$	151	$	156
Interest income(3)	55		56		164		169

____________

(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.

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

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI https://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 3
-Subparagraph (SX 210.12-04(a))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e24072-122690

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI https://asc.fasb.org/extlink&oid=124435984&loc=d3e28541-108399

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
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Derivative Instruments and Hedging Activities Disclosure [Abstract]

Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2022

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	September 30, 2022		December 31, 2021
Derivatives Designated as Hedging Instruments
Foreign exchange contracts - forwards	Other current assets	$	6	$	3
	Accrued expenses and other current liabilities	(27)		(6)

Interest rate cap	Other long-term assets	5		1
Interest rate swap	Other long-term assets	1		—

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

Derivatives NOT Designated as Hedging Instruments
Foreign exchange contracts – forwards	Other current assets	$	5	$	1
	Accrued expenses and other current liabilities	(8)		(5)
	Net undesignated derivative liabilities	$	(3)	$	(4)

Summary of Derivatives	Total Derivative assets	$	17	$	5
	Total Derivative liabilities	(35)		(11)
	Net Derivative liabilities	$	(18)	$	(6)

Schedule of Gains (losses) on Derivative Instruments

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


	Three Months Ended September 30,				Nine Months Ended September 30,
Loss on Derivative Instruments	2022		2021		2022		2021




Cash Flow Hedges - Foreign Exchange Forward Contracts and Options
Derivative loss recognized in OCI (effective portion)	$	(3)	$	3	$	(41)	$	(9)
Derivative loss reclassified from AOCL to income - Cost of sales (effective portion)	(11)		(2)		(17)		(5)

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 September 30,				Nine Months Ended September 30,
		2022		2021		2022		2021
Foreign exchange contracts – forwards	Other expense – Currency gains (losses), net	$	1	$	2	$	(22)	$	(20)

Fair Value of Financial Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Schedule of Fair Value of Financial Assets and Liabilities


	September 30, 2022		December 31, 2021
Assets
Foreign exchange contracts - forwards	$	11	$	4

Interest rate cap	5		1
Interest rate swap	1		—

Deferred compensation plan investments in mutual funds	15		18
Total	$	32	$	23
Liabilities
Foreign exchange contracts - forwards	$	35	$	11



Deferred compensation plan liabilities	14		18
Total	$	49	$	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:


	September 30, 2022				December 31, 2021
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Cash and cash equivalents	$	932	$	932	$	1,840	$	1,840
Accounts receivable, net	835		835		818		818
Short-term debt and current portion of long-term debt	1,070		1,066		650		653
Long-term Debt
Xerox Holdings Corporation	1,496		1,280		1,494		1,579
Xerox Corporation	894		730		1,892		1,987
Xerox - Other Subsidiaries(1)	286		286		210		210
Long-term debt	$	2,676	$	2,296	$	3,596	$	3,776

____________

(1)Represents subsidiaries of Xerox Corporation

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

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Employee Benefit Plans (Tables)

9 Months Ended

Sep. 30, 2022

Retirement Benefits [Abstract]

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


	Three Months Ended September 30,
	Pension Benefits
	U.S. Plans				Non-U.S. Plans				Retiree Health
Components of Net Periodic Benefit Costs:	2022		2021		2022		2021		2022		2021
Service cost	$	—	$	—	$	4	$	5	$	—	$	—
Interest cost	24		19		32		23		2		2
Expected return on plan assets	(22)		(29)		(58)		(53)		—		—
Recognized net actuarial loss (gain)	3		4		6		15		(1)		—
Amortization of prior service credit	—		—		1		—		(4)		(16)
Recognized settlement loss	10		13		—		—		—		—

Defined benefit plans	15		7		(15)		(10)		(3)		(14)
Defined contribution plans	5		—		3		5		n/a		n/a
Net Periodic Benefit Cost (Credit)	20		7		(12)		(5)		(3)		(14)

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income:
Net actuarial loss (gain)(1)	27		(14)		1		—		(13)		1
Prior service credit	—		—		—		—		(10)		—
Amortization of net actuarial (loss) gain	(13)		(17)		(6)		(15)		1		—
Amortization of net prior service credit	—		—		(1)		—		4		16

Total Recognized in Other Comprehensive (Loss) Income(2)	14		(31)		(6)		(15)		(18)		17
Total Recognized in Net Periodic Benefit Cost (Credit) and Other Comprehensive (Loss) Income	$	34	$	(24)	$	(18)	$	(20)	$	(21)	$	3

	Nine Months Ended September 30,
	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	$	1	$	1	$	12	$	15	$	1	$	1
Interest cost	68		56		94		67		6		6
Expected return on plan assets	(73)		(84)		(172)		(157)		—		—
Recognized net actuarial loss (gain)	10		13		18		44		(2)		—
Amortization of prior service credit	—		(1)		1		—		(11)		(49)
Recognized settlement loss	43		41		—		—		—		—

Defined benefit plans	49		26		(47)		(31)		(6)		(42)
Defined contribution plans	15		—		11		15		n/a		n/a
Net Periodic Benefit Cost (Credit)	64		26		(36)		(16)		(6)		(42)

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income:
Net actuarial loss (gain)(1)	34		(83)		32		1		(20)		3
Prior service cost (credit)	—		—		48		—		(33)		—
Amortization of net actuarial (loss) gain	(53)		(54)		(18)		(44)		2		—
Amortization of prior service credit	—		1		(1)		—		11		49

Total Recognized in Other Comprehensive (Loss) Income(2)	(19)		(136)		61		(43)		(40)		52
Total Recognized in Net Periodic Benefit Cost (Credit) and Other Comprehensive (Loss) Income	$	45	$	(110)	$	25	$	(59)	$	(46)	$	10

_____________

(2)Amounts represent the pre-tax effect included within Other Comprehensive (Loss) Income. Refer to Note 20 - 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:


	Nine Months Ended September 30,				Year Ended December 31,
	2022		2021		Estimated 2022		2021
U.S. plans	$	18	$	18	$	25	$	24
Non-U.S. plans	75		84		95		111
Total Pension plans	93		102		120		135
Retiree Health	13		17		25		25
Total Retirement plans	$	106	$	119	$	145	$	160

Shareholders' Equity of Xerox Holdings (Tables)

9 Months Ended

Sep. 30, 2022

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 June 30, 2022	$	155	$	1,564	$	—	$	5,484	$	(3,330)	$	3,873	$	9	$	3,882

Comprehensive (loss) income, net	—		—		—		(383)		(217)		(600)		1		(599)
Cash dividends declared - common(3)	—		—		—		(40)		—		(40)		—		(40)
Cash dividends declared - preferred(4)	—		—		—		(4)		—		(4)		—		(4)


Stock option and incentive plans, net	1		13		—		—		—		14		—		14




Investment from noncontrolling interests	—		—		—		—		—		—		1		1
Balance at September 30, 2022	$	156	$	1,577	$	—	$	5,057	$	(3,547)	$	3,243	$	11	$	3,254


	Common Stock(1)		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL(2)		Xerox Holdings Shareholders’ Equity		Non- controlling Interests		Total Equity
Balance at June 30, 2021	$	189	$	2,214	$	(159)	$	6,308	$	(3,265)	$	5,287	$	8	$	5,295

Comprehensive income (loss), net	—		—		—		90		(70)		20		(1)		19
Cash dividends declared - common(3)	—		—		—		(46)		—		(46)		—		(46)
Cash dividends declared - preferred(4)	—		—		—		(4)		—		(4)		—		(4)


Stock option and incentive plans, net	—		14		—		—		—		14		—		14

Payments to acquire treasury stock, including fees	—		—		(87)		—		—		(87)		—		(87)
Cancellation of treasury stock	(7)		(152)		159		—		—		—		—		—

Other	—		4		—		—		—		4		—		4
Balance at September 30, 2021	$	182	$	2,080	$	(87)	$	6,348	$	(3,335)	$	5,188	$	7	$	5,195


	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	—		—		—		(443)		(559)		(1,002)		(1)		(1,003)
Cash dividends declared - common(3)	—		—		—		(120)		—		(120)		—		(120)
Cash dividends declared - preferred(4)	—		—		—		(11)		—		(11)		—		(11)


Stock option and incentive plans, net	2		51		—		—		—		53		—		53

Payments to acquire treasury stock, including fees	—		—		(113)		—		—		(113)		—		(113)
Cancellation of treasury stock	(14)		(276)		290		—		—		—		—		—
Investment from noncontrolling interests	—		—		—		—		—		—		6		6
Distributions to noncontrolling interests	—		—		—		—		—		—		(1)		(1)

Balance at September 30, 2022	$	156	$	1,577	$	—	$	5,057	$	(3,547)	$	3,243	$	11	$	3,254


	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	—		—		—		220		(3)		217		(1)		216
Cash dividends declared - common(3)	—		—		—		(142)		—		(142)		—		(142)
Cash dividends declared - preferred(4)	—		—		—		(11)		—		(11)		—		(11)


Stock option and incentive plans, net	1		30		—		—		—		31		—		31

Payments to acquire treasury stock, including fees	—		—		(500)		—		—		(500)		—		(500)
Cancellation of treasury stock	(17)		(396)		413		—		—		—		—		—
Investment from noncontrolling interests	—		1		—		—		—		1		4		5

Balance at September 30, 2021	$	182	$	2,080	$	(87)	$	6,348	$	(3,335)	$	5,188	$	7	$	5,195

_____________

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

(2)Refer to Note 20 - Other Comprehensive (Loss) Income for the components of AOCL.

(3)Cash dividends declared on common stock for the three and nine months ended September 30, 2022 and 2021 were $0.25 per share, respectively, and $0.75 per share, respectively.

(4)Cash dividends declared on preferred stock for the three and nine months ended September 30, 2022 and 2021 were $20.00 per share, respectively, and $60.00 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 June 30, 2022	$	3,630	$	3,820	$	(3,330)	$	4,120	$	9	$	4,129
Comprehensive (loss) income, net	—		(383)		(217)		(600)		1		(599)


Dividends declared to parent	—		(49)		—		(49)		—		(49)

Transfers from parent	13		—		—		13		—		13



Investment from noncontrolling interests	—		—		—		—		1		1





Balance at September 30, 2022	$	3,643	$	3,388	$	(3,547)	$	3,484	$	11	$	3,495


	Additional Paid-in Capital		Retained Earnings		AOCL(1)		Xerox Shareholder's Equity		Non- controlling Interests		Total Equity
Balance at June 30, 2021	$	3,413	$	5,405	$	(3,265)	$	5,553	$	8	$	5,561

Comprehensive income (loss), net	—		90		(70)		20		(1)		19


Dividends declared to parent	—		(215)		—		(215)		—		(215)

Transfers from parent	96		—		—		96		—		96








Balance at September 30, 2021	$	3,509	$	5,280	$	(3,335)	$	5,454	$	7	$	5,461


	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	—		(443)		(559)		(1,002)		(1)		(1,003)


Dividends declared to parent	—		(645)		—		(645)		—		(645)

Transfers from parent	441		—		—		441		—		441






Investment from noncontrolling interests	—		—		—		—		6		6
Distributions to noncontrolling interests	—		—		—		—		(1)		(1)
Balance at September 30, 2022	$	3,643	$	3,388	$	(3,547)	$	3,484	$	11	$	3,495


	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	—		220		(3)		217		(1)		216


Dividends declared to parent	—		(774)		—		(774)		—		(774)
Intercompany loan capitalization(2)	(1,494)		—		—		(1,494)		—		(1,494)
Transfers from parent	114		—		—		114		—		114

Investment from noncontrolling interests	1		—		—		1		4		5

Balance at September 30, 2021	$	3,509	$	5,280	$	(3,335)	$	5,454	$	7	$	5,461

_____________

(1)Refer to Note 20 - Other Comprehensive (Loss) Income for the components of AOCL.

(2)Refer to Note 13 - Debt for information regarding capitalization of balance to Intercompany Loan with Xerox Holdings Corporation.

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
Stock based compensation plans, net	116	—

Cancellation of Treasury stock	(1,508)	(1,508)
Balance at June 30, 2022	154,966	—
Stock based compensation plans, net	604	—


Balance at September 30, 2022	155,570	—

Shareholder's Equity of Xerox (Tables)

9 Months Ended

Sep. 30, 2022

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 June 30, 2022	$	155	$	1,564	$	—	$	5,484	$	(3,330)	$	3,873	$	9	$	3,882

Comprehensive (loss) income, net	—		—		—		(383)		(217)		(600)		1		(599)
Cash dividends declared - common(3)	—		—		—		(40)		—		(40)		—		(40)
Cash dividends declared - preferred(4)	—		—		—		(4)		—		(4)		—		(4)


Stock option and incentive plans, net	1		13		—		—		—		14		—		14




Investment from noncontrolling interests	—		—		—		—		—		—		1		1
Balance at September 30, 2022	$	156	$	1,577	$	—	$	5,057	$	(3,547)	$	3,243	$	11	$	3,254


	Common Stock(1)		Additional Paid-in Capital		Treasury Stock		Retained Earnings		AOCL(2)		Xerox Holdings Shareholders’ Equity		Non- controlling Interests		Total Equity
Balance at June 30, 2021	$	189	$	2,214	$	(159)	$	6,308	$	(3,265)	$	5,287	$	8	$	5,295

Comprehensive income (loss), net	—		—		—		90		(70)		20		(1)		19
Cash dividends declared - common(3)	—		—		—		(46)		—		(46)		—		(46)
Cash dividends declared - preferred(4)	—		—		—		(4)		—		(4)		—		(4)


Stock option and incentive plans, net	—		14		—		—		—		14		—		14

Payments to acquire treasury stock, including fees	—		—		(87)		—		—		(87)		—		(87)
Cancellation of treasury stock	(7)		(152)		159		—		—		—		—		—

Other	—		4		—		—		—		4		—		4
Balance at September 30, 2021	$	182	$	2,080	$	(87)	$	6,348	$	(3,335)	$	5,188	$	7	$	5,195


	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	—		—		—		(443)		(559)		(1,002)		(1)		(1,003)
Cash dividends declared - common(3)	—		—		—		(120)		—		(120)		—		(120)
Cash dividends declared - preferred(4)	—		—		—		(11)		—		(11)		—		(11)


Stock option and incentive plans, net	2		51		—		—		—		53		—		53

Payments to acquire treasury stock, including fees	—		—		(113)		—		—		(113)		—		(113)
Cancellation of treasury stock	(14)		(276)		290		—		—		—		—		—
Investment from noncontrolling interests	—		—		—		—		—		—		6		6
Distributions to noncontrolling interests	—		—		—		—		—		—		(1)		(1)

Balance at September 30, 2022	$	156	$	1,577	$	—	$	5,057	$	(3,547)	$	3,243	$	11	$	3,254


	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	—		—		—		220		(3)		217		(1)		216
Cash dividends declared - common(3)	—		—		—		(142)		—		(142)		—		(142)
Cash dividends declared - preferred(4)	—		—		—		(11)		—		(11)		—		(11)


Stock option and incentive plans, net	1		30		—		—		—		31		—		31

Payments to acquire treasury stock, including fees	—		—		(500)		—		—		(500)		—		(500)
Cancellation of treasury stock	(17)		(396)		413		—		—		—		—		—
Investment from noncontrolling interests	—		1		—		—		—		1		4		5

Balance at September 30, 2021	$	182	$	2,080	$	(87)	$	6,348	$	(3,335)	$	5,188	$	7	$	5,195

_____________

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

(2)Refer to Note 20 - Other Comprehensive (Loss) Income for the components of AOCL.

(3)Cash dividends declared on common stock for the three and nine months ended September 30, 2022 and 2021 were $0.25 per share, respectively, and $0.75 per share, respectively.

(4)Cash dividends declared on preferred stock for the three and nine months ended September 30, 2022 and 2021 were $20.00 per share, respectively, and $60.00 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 June 30, 2022	$	3,630	$	3,820	$	(3,330)	$	4,120	$	9	$	4,129
Comprehensive (loss) income, net	—		(383)		(217)		(600)		1		(599)


Dividends declared to parent	—		(49)		—		(49)		—		(49)

Transfers from parent	13		—		—		13		—		13



Investment from noncontrolling interests	—		—		—		—		1		1





Balance at September 30, 2022	$	3,643	$	3,388	$	(3,547)	$	3,484	$	11	$	3,495


	Additional Paid-in Capital		Retained Earnings		AOCL(1)		Xerox Shareholder's Equity		Non- controlling Interests		Total Equity
Balance at June 30, 2021	$	3,413	$	5,405	$	(3,265)	$	5,553	$	8	$	5,561

Comprehensive income (loss), net	—		90		(70)		20		(1)		19


Dividends declared to parent	—		(215)		—		(215)		—		(215)

Transfers from parent	96		—		—		96		—		96








Balance at September 30, 2021	$	3,509	$	5,280	$	(3,335)	$	5,454	$	7	$	5,461


	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	—		(443)		(559)		(1,002)		(1)		(1,003)


Dividends declared to parent	—		(645)		—		(645)		—		(645)

Transfers from parent	441		—		—		441		—		441






Investment from noncontrolling interests	—		—		—		—		6		6
Distributions to noncontrolling interests	—		—		—		—		(1)		(1)
Balance at September 30, 2022	$	3,643	$	3,388	$	(3,547)	$	3,484	$	11	$	3,495


	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	—		220		(3)		217		(1)		216


Dividends declared to parent	—		(774)		—		(774)		—		(774)
Intercompany loan capitalization(2)	(1,494)		—		—		(1,494)		—		(1,494)
Transfers from parent	114		—		—		114		—		114

Investment from noncontrolling interests	1		—		—		1		4		5

Balance at September 30, 2021	$	3,509	$	5,280	$	(3,335)	$	5,454	$	7	$	5,461

_____________

(1)Refer to Note 20 - Other Comprehensive (Loss) Income for the components of AOCL.

(2)Refer to Note 13 - Debt for information regarding capitalization of balance to Intercompany Loan with Xerox Holdings Corporation.

Other Comprehensive (Loss) Income (Tables)

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

Schedule of Other Comprehensive Income (Loss)

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


	Three Months Ended September 30,								Nine Months Ended September 30,
	2022				2021				2022				2021
	Pre-tax		Net of Tax		Pre-tax		Net of Tax		Pre-tax		Net of Tax		Pre-tax		Net of Tax
Translation Adjustments Losses	$	(280)	$	(277)	$	(129)	$	(125)	$	(646)	$	(636)	$	(126)	$	(122)
Unrealized (Losses) Gains
Changes in fair value of cash flow hedges (losses) gains	(3)		(3)		3		2		(41)		(32)		(9)		(7)
Changes in cash flow hedges reclassed to earnings(1)	11		9		2		2		17		13		5		4

Net Unrealized Gains (Losses)	8		6		5		4		(24)		(19)		(4)		(3)

Defined Benefit Plans (Losses) Gains
Net actuarial/prior service (losses) gains	(5)		(4)		13		10		(61)		(47)		79		59
Prior service amortization(2)	(3)		(3)		(16)		(12)		(10)		(8)		(50)		(37)
Actuarial loss amortization/settlement(2)	18		14		32		23		69		52		98		72

Other gains(3)	47		47		30		30		99		99		28		28
Changes in Defined Benefit Plans Gains	57		54		59		51		97		96		155		122



Other Comprehensive (Loss) Income Attributable to Xerox Holdings/Xerox	$	(215)	$	(217)	$	(65)	$	(70)	$	(573)	$	(559)	$	25	$	(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:


	September 30, 2022		December 31, 2021
Cumulative translation adjustments	$	(2,497)	$	(1,861)
Other unrealized losses, net	(21)		(2)
Benefit plans net actuarial losses and prior service credits	(1,029)		(1,125)
Total Accumulated Other Comprehensive Loss Attributable to Xerox Holdings/Xerox	$	(3,547)	$	(2,988)

(Loss) Earnings per Share (Tables)

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Earnings Per Share

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Basic (Loss) Earnings per Share
Net (Loss) Income Attributable to Xerox Holdings	$	(383)	$	90	$	(443)	$	220
Accrued dividends on preferred stock	(4)		(4)		(11)		(11)


Adjusted Net (loss) income available to common shareholders	$	(387)	$	86	$	(454)	$	209

Weighted average common shares outstanding(1)	155,697		179,408		155,799		187,549




Basic (Loss) Earnings per Share	$	(2.48)	$	0.48	$	(2.91)	$	1.12

Diluted (Loss) Earnings per Share
Net (Loss) Income Attributable to Xerox Holdings	$	(383)	$	90	$	(443)	$	220
Accrued dividends on preferred stock	(4)		(4)		(11)		(11)


Adjusted Net (loss) income available to common shareholders	$	(387)	$	86	$	(454)	$	209

Weighted average common shares outstanding(1)	155,697		179,408		155,799		187,549
Common shares issuable with respect to:
Stock options	—		—		—		—
Restricted stock and performance shares	—		2,168		—		2,120
Convertible preferred stock	—		—		—		—

Adjusted weighted average common shares outstanding	155,697		181,576		155,799		189,669




Diluted (Loss) Earnings per Share	$	(2.48)	$	0.48	$	(2.91)	$	1.10

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	598		622		598		622
Restricted stock and performance shares	5,222		4,387		5,222		4,435
Convertible preferred stock	6,742		6,742		6,742		6,742
Total Anti-Dilutive Securities	12,562		11,751		12,562		11,799

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

____________

(1)Includes unissued shares associated with the accelerated share vesting since all contingencies regarding issuance have lapsed.

Contingencies and Litigation (Tables)

9 Months Ended

Sep. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Schedule of Loss Contingencies by Contingency

Below is a summary of our Brazilian tax contingencies:


	September 30, 2022		December 31, 2021
Tax contingency - unreserved	$	331	$	292
Escrow cash deposits	35		32
Surety bonds	75		96
Letters of credit	66		74
Liens on Brazilian assets	—		—

Basis of Presentation (Details) $ in Millions	3 Months Ended		9 Months Ended	12 Months Ended
Basis of Presentation (Details) $ in Millions	Sep. 30, 2022 USD ($)	Mar. 31, 2022 segment	Sep. 30, 2022 segment unit	Dec. 31, 2021 segment unit
Segment Reporting, Asset Reconciling Item [Line Items]
Number of reportable segments \| segment		2	2	1
Number of operating segments \| segment			2	1
Number of reporting units \| unit				1
Non-cash impairment charge \| $	$ 395
Pre-tax impairment charge \| $	$ 412
Print and Other
Segment Reporting, Asset Reconciling Item [Line Items]
Number of reporting units \| unit			2

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Disaggregation of Revenue [Line Items]
Total Revenues	$ 1,751	$ 1,758	$ 5,166	$ 5,261
Equipment
Disaggregation of Revenue [Line Items]
Total Revenues	390	387	1,070	1,197
Supplies, paper and other sales
Disaggregation of Revenue [Line Items]
Total Revenues	300	270	879	732
Maintenance agreements
Disaggregation of Revenue [Line Items]
Total Revenues	420	447	1,295	1,330
Service arrangements
Disaggregation of Revenue [Line Items]
Total Revenues	487	493	1,451	1,490
Rental and other
Disaggregation of Revenue [Line Items]
Total Revenues	103	106	315	346
Financing
Disaggregation of Revenue [Line Items]
Total Revenues	51	55	156	166
Sales
Disaggregation of Revenue [Line Items]
Total Revenues	690	657	1,949	1,929
Sales \| Direct equipment lease
Disaggregation of Revenue [Line Items]
Total Revenues	146	170	425	506
Sales \| Distributors & resellers
Disaggregation of Revenue [Line Items]
Total Revenues	318	283	877	826
Sales \| Customer direct
Disaggregation of Revenue [Line Items]
Total Revenues	226	204	647	597
United States
Disaggregation of Revenue [Line Items]
Total Revenues	986	1,012	2,918	3,001
Europe
Disaggregation of Revenue [Line Items]
Total Revenues	470	487	1,403	1,500
Canada
Disaggregation of Revenue [Line Items]
Total Revenues	131	97	381	294
Other
Disaggregation of Revenue [Line Items]
Total Revenues	$ 164	$ 162	$ 464	$ 466

Revenue - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Revenue - Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Capitalized Contract Cost [Line Items]
Contract liabilities	$ 131		$ 131		$ 144
Contract liability amortization period (months)			30 months
Deferred incremental direct costs, amortization period (years)	4 years		4 years
Deferred incremental direct costs net of accumulated amortization	$ 121		$ 121		132
Contract Fulfillment Costs and Inducements
Capitalized Contract Cost [Line Items]
Capitalized contract costs, amounts deferred	11		11		$ 15
Capitalized contract costs, amortization	$ 1	$ 2	$ 4	$ 5

Revenue - Capitalized Contract Cost (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenue from Contract with Customer [Abstract]
Incremental direct costs of obtaining a contract	$ 15	$ 14	$ 43	$ 44
Amortization of incremental direct costs	$ 17	$ 18	$ 51	$ 55

Segment Reporting - Additional Information (Details)	3 Months Ended	9 Months Ended	12 Months Ended
Segment Reporting - Additional Information (Details)	Mar. 31, 2022 segment	Sep. 30, 2022 segment	Dec. 31, 2021 segment business
Segment Reporting [Abstract]
Number of reportable segments	2	2	1
Number of businesses \| business			3
Number of operating segments		2	1

Segment Reporting - Selected Financial Information For Reportable Segments (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Segment Reporting, Asset Reconciling Item [Line Items]
Total Revenues	$ 1,751	$ 1,758	$ 5,166	$ 5,261
Depreciation and amortization	65	79	205	249
Interest income	55	56	164	169
Total Interest expense	49	52	151	156
Intersegment Eliminations
Segment Reporting, Asset Reconciling Item [Line Items]
Total Revenues	40	49	117	156
Operating Segments
Segment Reporting, Asset Reconciling Item [Line Items]
Total Revenues	1,791	1,807	5,283	5,417
Segment profit	$ 65	$ 74	$ 97	$ 289
Segment margin	3.70%	4.20%	1.90%	5.50%
Depreciation and amortization	$ 55	$ 66	$ 174	$ 207
Interest income	51	55	156	166
Total Interest expense	30	31	84	91
Non financing interest expenses	2	2	6	6
Print and Other
Segment Reporting, Asset Reconciling Item [Line Items]
Total Revenues	1,604	1,590	4,716	4,742
Print and Other \| Intersegment Eliminations
Segment Reporting, Asset Reconciling Item [Line Items]
Total Revenues	37	46	108	147
Print and Other \| Operating Segments
Segment Reporting, Asset Reconciling Item [Line Items]
Total Revenues	1,641	1,636	4,824	4,889
Segment profit	$ 57	$ 50	$ 55	$ 232
Segment margin	3.60%	3.10%	1.20%	4.90%
Depreciation and amortization	$ 28	$ 28	$ 85	$ 86
Interest income	0	0	0	0
Total Interest expense	0	0	0	0
Financing (FITTLE)
Segment Reporting, Asset Reconciling Item [Line Items]
Total Revenues	147	168	450	519
Financing (FITTLE) \| Intersegment Eliminations
Segment Reporting, Asset Reconciling Item [Line Items]
Total Revenues	3	3	9	9
Financing (FITTLE) \| Operating Segments
Segment Reporting, Asset Reconciling Item [Line Items]
Total Revenues	150	171	459	528
Segment profit	$ 8	$ 24	$ 42	$ 57
Segment margin	5.40%	14.30%	9.30%	11.00%
Depreciation and amortization	$ 27	$ 38	$ 89	$ 121
Interest income	51	55	156	166
Total Interest expense	$ 30	$ 31	$ 84	$ 91

Segment Reporting - Reportable Segments (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Segment Reporting, Asset Reconciling Item [Line Items]
Total Pre-tax (loss) income	$ (380)	$ 84	$ (474)	$ 236
Goodwill impairment	(412)	0	(412)	0
Restructuring and related costs, net	(22)	(10)	(41)	(39)
Amortization of intangible assets	(10)	(13)	(31)	(42)
Accelerated share vesting	0	0	(21)	0
Other expenses, net	(1)	33	(66)	28
Depreciation and amortization	65	79	205	249
Amortization of intangible assets	10	13	31	42
Total Interest expense	49	52	151	156
Interest income	55	56	164	169
Operating Segments
Segment Reporting, Asset Reconciling Item [Line Items]
Total Pre-tax (loss) income	65	74	97	289
Depreciation and amortization	55	66	174	207
Total Interest expense	30	31	84	91
Interest income	51	55	156	166
Corporate
Segment Reporting, Asset Reconciling Item [Line Items]
Total Interest expense	19	21	67	65
Interest income	$ 4	$ 1	$ 8	$ 3

Lessor (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Lessor (Details) - USD ($) $ in Millions	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Leases [Abstract]
Revenue from sales type leases	$ 146	$ 170	$ 425	$ 506
Interest income on lease receivables	51	55	156	166
Lease income - operating leases	40	54	132	172
Variable lease income	16	15	47	46
Total Lease income	253	294	760	890
Profit at lease commencement, sales type leases	$ 39	$ 51	$ 127	$ 152

Acquisitions and Investments (Details) £ in Millions, $ in Millions, $ in Millions	1 Months Ended		3 Months Ended
	Jul. 31, 2022 USD ($)	Jul. 31, 2022 GBP (£)	Mar. 31, 2022 USD ($)	Mar. 31, 2022 CAD ($)	Sep. 30, 2022 USD ($)	Mar. 31, 2022 CAD ($)	Dec. 31, 2021 USD ($)
Business Acquisition [Line Items]
Goodwill					$ 2,753		$ 3,287
Powerland
Business Acquisition [Line Items]
Acquisition price			$ 52	$ 66
Contingent consideration			$ 22			$ 28
Contingent consideration, term			2 years	2 years
Go Inspire
Business Acquisition [Line Items]
Acquisition price	$ 41	£ 34
Series of Individually Immaterial Business Acquisitions
Business Acquisition [Line Items]
Percentage of ownership acquired					100.00%
Intangible assets, net					$ 51
Goodwill					$ 64

Supplementary Financial Information - Statements of (Loss) Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Restricted Cash and Cash Equivalents Items [Line Items]
Selling, administrative and general expenses	$ 418	$ 413	$ 1,332	$ 1,295
Total Costs and Expenses	2,131	1,674	5,640	5,025
COVID-19 Pandemic, Aid And Economic Stimulus Savings
Restricted Cash and Cash Equivalents Items [Line Items]
Cost of services, maintenance and rentals	0	4	0	17
Selling, administrative and general expenses	0	5	0	12
Total Costs and Expenses	$ 0	$ 9	$ 0	$ 29

Supplementary Financial Information - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Supplemental Financial Information [Abstract]
Cash and cash equivalents	$ 932	$ 1,840
Restricted cash
Litigation deposits in Brazil	37	34
Escrow and cash collections related to secured borrowing arrangements	31	32
Other restricted cash	1	3
Total Restricted cash	69	69
Cash, cash equivalents and restricted cash	$ 1,001	$ 1,909

Supplementary Financial Information - Restricted Cash Balance Sheet Location (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Restricted Cash and Cash Equivalents Items [Line Items]
Total Restricted cash	$ 69	$ 69
Other current assets
Restricted Cash and Cash Equivalents Items [Line Items]
Total Restricted cash	31	33
Other long-term assets
Restricted Cash and Cash Equivalents Items [Line Items]
Total Restricted cash	$ 38	$ 36

Supplementary Financial Information - Cash Flow Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Supplemental Financial Information [Abstract]
Provision for receivables			$ 25	$ 13
Provision for inventory			23	25
Provision for product warranties			5	6
Depreciation of buildings and equipment			51	57
Depreciation and obsolescence of equipment on operating leases			89	120
Amortization of internal use software			34	30
Amortization of acquired intangible assets	$ 10	$ 13	31	42
Amortization of customer contract costs			55	60
Cost of additions to land, buildings and equipment			24	21
Cost of additions to internal use software			15	31
Payments to acquire noncontrolling interests			13	3
Common stock dividends - Xerox Holdings			120	146
Preferred stock dividends - Xerox Holdings			11	11
Payments to noncontrolling interests			1	0
Proceeds from noncontrolling interests			6	15
Repurchases related to stock-based compensation - Xerox Holdings			$ 10	$ 14

Accounts Receivable, Net - Summary (Details) - USD ($) $ in Millions	3 Months Ended						9 Months Ended	12 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for doubtful accounts	$ (51)						$ (51)	$ (58)
Accounts receivable, net	835						835	818
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance			$ 58				58
Ending balance	51						$ 51	$ 58
Credit Concentration Risk \| Accounts Receivable \| Customers
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Concentration risk (percentage)							5.80%	6.60%
Accounts Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Invoiced	679						$ 679	$ 660
Accrued	207						207	216
Allowance for doubtful accounts	(51)	$ (63)	(63)	$ (62)	$ (68)	$ (68)	(51)	(58)
Accounts receivable, net	835						835	818
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	63	63	58	68	68	69	58	69
Provision	(1)	3	9	0	1	4
Charge-offs	(5)	(2)	(3)	(5)	(2)	(5)
Recoveries and other	(6)	(1)	(1)	(1)	1	0
Ending balance	$ 51	$ 63	$ 63	$ 62	$ 68	$ 68	$ 51	$ 58

Accounts Receivable, Net - Accounts Receivable Sales Arrangements (Details) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($) facility	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) facility	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Receivables [Abstract]
Number of facilities enabling the sale of accounts receivable \| facility	1		1
Accounts Receivable Sales Arrangements [Abstract]
Uncollected accounts receivable sold and derecognized	$ 119		$ 119		$ 102
Accounts Receivable
Accounts Receivable Sales Arrangements [Abstract]
Accounts receivable sales	$ 164	$ 127	$ 400	$ 359

Finance Receivables, Net - Summary (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021	Dec. 31, 2020	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Gross receivables	$ 3,368	$ 3,568
Unearned income	(351)	(380)
Total	3,017	3,188
Residual values	0	0
Allowance for doubtful accounts	(117)	(118)	$ (133)	$ (116)	$ (120)	$ (127)	$ (133)	$ (135)
Finance receivables, net	2,900	3,070
Less: Billed portion of finance receivables, net	91	94
Less: Current portion of finance receivables not billed, net	995	1,042
Finance receivables due after one year, net	$ 1,814	$ 1,934
Credit Concentration Risk \| Financing Receivable \| U.S., Canada and EMEA
Financing Receivable, Allowance for Credit Loss [Line Items]
Concentration risk (percentage)	3.90%	3.70%	4.00%

Finance Receivables, Net - Allowance for Credit Losses (Details) - USD ($) $ in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 116	$ 120	$ 118	$ 133	$ 135	$ 133	$ 118
Provision	9	4	6	(4)	2	6
Charge-offs	(6)	(6)	(4)	(2)	(5)	(3)
Recoveries and other	(2)	(2)	0	0	1	(1)
Ending balance	117	116	120	127	133	135	117
Finance receivables collectively evaluated for impairment	3,017			3,202			$ 3,017
Loss rates of customers with low credit risk							1.00%
Loss rates of customers with average credit risk, low range							2.00%
Loss rates of customers with average credit risk, high range							5.00%
Loss rates of customers with high credit risk, low range							7.00%
Loss rates of customers with high credit risk, high range							10.00%
United States
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	75	78	77	81	78	77	$ 77
Provision	6	0	3	0	6	2
Charge-offs	(4)	(3)	(2)	(1)	(3)	(2)
Recoveries and other	0	0	0	0	0	1
Ending balance	77	75	78	80	81	78	77
Finance receivables collectively evaluated for impairment	1,883			1,866			1,883
Canada
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	11	11	11	15	16	15	11
Provision	1	1	0	(3)	(1)	1
Charge-offs	(1)	(1)	(1)	(1)	(1)	0
Recoveries and other	0	0	1	0	1	0
Ending balance	11	11	11	11	15	16	11
Finance receivables collectively evaluated for impairment	214			262			214
EMEA
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	30	31	30	37	41	41	30
Provision	2	3	3	(1)	(3)	3
Charge-offs	(1)	(2)	(1)	0	(1)	(1)
Recoveries and other	(2)	(2)	(1)	0	0	(2)
Ending balance	29	$ 30	$ 31	36	$ 37	$ 41	29
Finance receivables collectively evaluated for impairment	$ 920			$ 1,074			$ 920

Finance Receivables, Net - Credit Quality Indicators (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Financing Receivable, Credit Quality Indicator [Line Items]
Current Year	$ 902	$ 1,236
CY-1	941	837
CY-2	594	642
CY-3	393	346
CY-4	160	110
Prior	27	17
Total	3,017	3,188
United States (Direct)
Financing Receivable, Credit Quality Indicator [Line Items]
Current Year	219	299
CY-1	230	234
CY-2	177	186
CY-3	121	107
CY-4	52	35
Prior	10	6
Total	809	867
United States (Indirect)
Financing Receivable, Credit Quality Indicator [Line Items]
Current Year	348	460
CY-1	375	263
CY-2	196	182
CY-3	114	82
CY-4	38	22
Prior	3	0
Total	1,074	1,009
Canada
Financing Receivable, Credit Quality Indicator [Line Items]
Current Year	51	74
CY-1	55	73
CY-2	51	56
CY-3	36	33
CY-4	17	13
Prior	4	2
Total	214	251
EMEA
Financing Receivable, Credit Quality Indicator [Line Items]
Current Year	284	403
CY-1	281	267
CY-2	170	218
CY-3	122	124
CY-4	53	40
Prior	10	9
Total	920	1,061
Low Credit Risk
Financing Receivable, Credit Quality Indicator [Line Items]
Current Year	487	644
CY-1	486	436
CY-2	304	341
CY-3	206	195
CY-4	90	57
Prior	13	10
Total	1,586	1,683
Low Credit Risk \| United States (Direct)
Financing Receivable, Credit Quality Indicator [Line Items]
Current Year	116	148
CY-1	115	121
CY-2	92	98
CY-3	64	68
CY-4	33	21
Prior	4	3
Total	424	459
Low Credit Risk \| United States (Indirect)
Financing Receivable, Credit Quality Indicator [Line Items]
Current Year	183	235
CY-1	182	145
CY-2	101	100
CY-3	63	43
CY-4	18	11
Prior	2	0
Total	549	534
Low Credit Risk \| Canada
Financing Receivable, Credit Quality Indicator [Line Items]
Current Year	18	32
CY-1	24	27
CY-2	18	22
CY-3	14	13
CY-4	7	3
Prior	1	1
Total	82	98
Low Credit Risk \| EMEA
Financing Receivable, Credit Quality Indicator [Line Items]
Current Year	170	229
CY-1	165	143
CY-2	93	121
CY-3	65	71
CY-4	32	22
Prior	6	6
Total	531	592
Average Credit Risk
Financing Receivable, Credit Quality Indicator [Line Items]
Current Year	331	451
CY-1	338	286
CY-2	205	242
CY-3	148	118
CY-4	53	39
Prior	9	6
Total	1,084	1,142
Average Credit Risk \| United States (Direct)
Financing Receivable, Credit Quality Indicator [Line Items]
Current Year	53	60
CY-1	39	40
CY-2	30	57
CY-3	36	23
CY-4	11	8
Prior	3	2
Total	172	190
Average Credit Risk \| United States (Indirect)
Financing Receivable, Credit Quality Indicator [Line Items]
Current Year	147	201
CY-1	169	103
CY-2	84	74
CY-3	46	35
CY-4	17	10
Prior	1	0
Total	464	423
Average Credit Risk \| Canada
Financing Receivable, Credit Quality Indicator [Line Items]
Current Year	28	34
CY-1	26	34
CY-2	24	27
CY-3	18	15
CY-4	7	6
Prior	2	1
Total	105	117
Average Credit Risk \| EMEA
Financing Receivable, Credit Quality Indicator [Line Items]
Current Year	103	156
CY-1	104	109
CY-2	67	84
CY-3	48	45
CY-4	18	15
Prior	3	3
Total	343	412
High Credit Risk
Financing Receivable, Credit Quality Indicator [Line Items]
Current Year	84	141
CY-1	117	115
CY-2	85	59
CY-3	39	33
CY-4	17	14
Prior	5	1
Total	347	363
High Credit Risk \| United States (Direct)
Financing Receivable, Credit Quality Indicator [Line Items]
Current Year	50	91
CY-1	76	73
CY-2	55	31
CY-3	21	16
CY-4	8	6
Prior	3	1
Total	213	218
High Credit Risk \| United States (Indirect)
Financing Receivable, Credit Quality Indicator [Line Items]
Current Year	18	24
CY-1	24	15
CY-2	11	8
CY-3	5	4
CY-4	3	1
Prior	0	0
Total	61	52
High Credit Risk \| Canada
Financing Receivable, Credit Quality Indicator [Line Items]
Current Year	5	8
CY-1	5	12
CY-2	9	7
CY-3	4	5
CY-4	3	4
Prior	1	0
Total	27	36
High Credit Risk \| EMEA
Financing Receivable, Credit Quality Indicator [Line Items]
Current Year	11	18
CY-1	12	15
CY-2	10	13
CY-3	9	8
CY-4	3	3
Prior	1	0
Total	$ 46	$ 57

Finance Receivables, Net - Aging of Billed Finance Receivables (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Financing Receivable, Past Due [Line Items]
Total	$ 3,017	$ 3,188
Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	95	98
Unbilled Revenues
Financing Receivable, Past Due [Line Items]
Total	2,922	3,090
United States
Financing Receivable, Past Due [Line Items]
Total	1,883	1,876
United States \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	77	79
United States \| Unbilled Revenues
Financing Receivable, Past Due [Line Items]
Total	1,806	1,797
Canada
Financing Receivable, Past Due [Line Items]
Total	214	251
Canada \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	7	7
Canada \| Unbilled Revenues
Financing Receivable, Past Due [Line Items]
Total	207	244
EMEA
Financing Receivable, Past Due [Line Items]
Total	920	1,061
EMEA \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	11	12
EMEA \| Unbilled Revenues
Financing Receivable, Past Due [Line Items]
Total	909	1,049
Current \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	70	71
Current \| United States \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	56	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	14	15
31-90 Days Past Due \| United States \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	11	12
31-90 Days Past Due \| Canada \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	1	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	11	12
>90 Days Past Due \| United States \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	10	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	65	83
>90 Days and Accruing \| United States
Financing Receivable, Past Due [Line Items]
Financing receivable, 90 days or more past due, still accruing	48	61
>90 Days and Accruing \| Canada
Financing Receivable, Past Due [Line Items]
Financing receivable, 90 days or more past due, still accruing	6	9
>90 Days and Accruing \| EMEA
Financing Receivable, Past Due [Line Items]
Financing receivable, 90 days or more past due, still accruing	11	13
Direct
Financing Receivable, Past Due [Line Items]
Total	809	867
Direct \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	40	42
Direct \| Unbilled Revenues
Financing Receivable, Past Due [Line Items]
Total	769	825
Direct \| Current \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	29	28
Direct \| 31-90 Days Past Due \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	5	7
Direct \| >90 Days Past Due \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	6	7
Direct \| >90 Days and Accruing
Financing Receivable, Past Due [Line Items]
Financing receivable, 90 days or more past due, still accruing	48	61
Indirect
Financing Receivable, Past Due [Line Items]
Total	1,074	1,009
Indirect \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	37	37
Indirect \| Unbilled Revenues
Financing Receivable, Past Due [Line Items]
Total	1,037	972
Indirect \| Current \| Billed Revenues
Financing Receivable, Past Due [Line Items]
Total	27	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

Inventories and Equipment on Operating Leases, Net - Inventories by Major Category (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Inventories and Equipment on Operating Leases, Net [Abstract]
Finished goods	$ 617	$ 568
Work-in-process	47	43
Raw materials	113	85
Total Inventories	$ 777	$ 696

Inventories and Equipment on Operating Leases, Net - Equipment on Operating Leases and Related Accumulated Depreciation (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Inventories and Equipment on Operating Leases, Net [Abstract]
Equipment on operating leases	$ 1,142	$ 1,266
Accumulated depreciation	(926)	(1,013)
Equipment on operating leases, net	$ 216	$ 253

Inventories and Equipment on Operating Leases, Net - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Inventories and Equipment on Operating Leases, Net [Abstract]
Usage charges in excess of minimum contracted amounts	$ 16	$ 15	$ 47	$ 46

Lessee - Additional Information (Details)	Sep. 30, 2022
Leases [Abstract]
Remaining terms of leases (years)	10 years

Lessee - Components of Lease Expense (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Leases [Abstract]
Operating lease expense	$ 25	$ 25	$ 74	$ 79
Short-term lease expense	4	5	12	16
Variable lease expense	12	12	37	35
Sublease income	(1)	(1)	(5)	(3)
Total Lease expense	$ 40	$ 41	$ 118	$ 127

Lessee - Operating Lease ROU Asset- Operating Leases Assets and Liabilities (Details) - USD ($) $ in Millions	Sep. 30, 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	$ 215	$ 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	$ 71	$ 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	$ 160	$ 204
Total Operating lease liabilities	$ 231	$ 283

Restructuring Programs - Additional Information (Details) $ in Millions	3 Months Ended				9 Months Ended
	Sep. 30, 2022 USD ($)	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) employee	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Restructuring Cost and Reserve [Line Items]
Net current period charges	$ 14	$ 21	$ 19		$ 54
Restructuring charges	15	23	22
Headcount reductions, number of employees \| employee					1,600
Reversals	1	2	3		$ 6
Payments for restructuring					38	$ 61
Restructuring related reserve	10				10		$ 18
Net asset impairment charge (credit)	8			$ 0	(10)	11
Gain on sales of owned assets	(2)			$ 0	(22)	0
HCL/TCS
Restructuring Cost and Reserve [Line Items]
Payments for restructuring					4	$ 9
Severance and Related Costs
Restructuring Cost and Reserve [Line Items]
Net current period charges	14	21	19
Restructuring charges	15	22	22		59
Reversals	1	1	3
Other Contractual Termination Costs
Restructuring Cost and Reserve [Line Items]
Net current period charges	0	0	0
Restructuring charges	0	1	0		$ 1
Reversals	$ 0	$ 1	$ 0

Restructuring Programs - Restructuring Program Activity (Details) - USD ($) $ in Millions	3 Months Ended			9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2022	Sep. 30, 2021
Restructuring Reserve [Roll Forward]
Balance at beginning of period	$ 46	$ 39	$ 27	$ 27
Provision	15	23	22
Reversals	(1)	(2)	(3)	(6)
Net current period charges	14	21	19	54
Charges against reserve and currency	(19)	(14)	(7)	(40)	$ (74)
Balance at end of period	41	46	39	41
Severance and Related Costs
Restructuring Reserve [Roll Forward]
Balance at beginning of period	44	37	25	25
Provision	15	22	22	59
Reversals	(1)	(1)	(3)
Net current period charges	14	21	19
Charges against reserve and currency	(19)	(14)	(7)
Balance at end of period	39	44	37	39
Other Contractual Termination Costs
Restructuring Reserve [Roll Forward]
Balance at beginning of period	2	2	2	2
Provision	0	1	0	1
Reversals	0	(1)	0
Net current period charges	0	0	0
Charges against reserve and currency	0	0	0
Balance at end of period	$ 2	$ 2	$ 2	$ 2

Restructuring Programs -Reconciliation to The Consolidated Statements of Cash Flows (Details) - USD ($) $ in Millions	3 Months Ended			9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2022	Sep. 30, 2021
Restructuring and Related Activities [Abstract]
Charges against reserve and currency	$ (19)	$ (14)	$ (7)	$ (40)	$ (74)
Effects of foreign currency and other non-cash items				2	13
Restructuring cash payments				$ (38)	$ (61)

Restructuring Programs - Restructuring and Related Costs (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Restructuring Cost and Reserve [Line Items]
Related restructuring costs	$ 0	$ 7	$ (3)	$ 11
Retention related severance/bonuses
Restructuring Cost and Reserve [Line Items]
Related restructuring costs	(1)	7	(3)	6
Contractual severance costs
Restructuring Cost and Reserve [Line Items]
Related restructuring costs	1	0	0	3
Consulting and other costs
Restructuring Cost and Reserve [Line Items]
Related restructuring costs	$ 0	$ 0	$ 0	$ 2

Restructuring Programs - Restructuring Related Asset Impairment Activity (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Restructuring and Related Activities [Abstract]
Lease right of use assets	$ 1	$ 0	$ 2	$ 2
Owned asset	9	0	10	10
Asset impairments	10	0	12	12
Gain on sales of assets	(2)	0	(22)	0
Adjustments/Reversals	0	0	0	(1)
Net asset impairment charge (credit)	$ 8	$ 0	$ (10)	$ 11

Debt - Narrative (Details)	1 Months Ended			3 Months Ended		9 Months Ended
Debt - Narrative (Details)	Jul. 31, 2022 USD ($)	Jun. 30, 2022 USD ($) $ / shares	Feb. 28, 2021 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Secured Borrowings and Collateral [Abstract]
Interest expense				$ 49,000,000	$ 52,000,000	$ 151,000,000	$ 156,000,000
Special Purpose Entity (SPE)
Secured Borrowings and Collateral [Abstract]
Term of debt (years)						2 years 6 months
Credit Agreement \| Revolving Credit Facility
Secured Borrowings and Collateral [Abstract]
Debt issuance costs	$ 3,000,000
Term of debt (years)	2 years
Maximum borrowing capacity	$ 500,000,000	$ 1,500,000,000
Credit facility, increase limit	150,000,000
Letter of credit, credit facility sub-facility, maximum borrowing amount	150,000,000
Line of credit facility, fair value of amount outstanding				$ 0		$ 0
Base rate (percent)				1.00%
Line of credit facility covenant terms minimum unrestricted cash				$ 500,000,000		$ 500,000,000
Cap on cash netting	$ 1,000,000,000
Covenant, leverage ratio, maximum	3.5
Credit Agreement \| Revolving Credit Facility \| Net Leverage Ratio, September 2022
Secured Borrowings and Collateral [Abstract]
Covenant, leverage ratio, maximum				5.25		5.25
Credit Agreement \| Revolving Credit Facility \| Net Leverage Ratio, December 2022
Secured Borrowings and Collateral [Abstract]
Covenant, leverage ratio, maximum				5.00		5.00
Credit Agreement \| Revolving Credit Facility \| Net Leverage Ratio, March 2023
Secured Borrowings and Collateral [Abstract]
Covenant, leverage ratio, maximum				4.75		4.75
Credit Agreement \| Revolving Credit Facility \| Net Leverage Ratio, June 2023
Secured Borrowings and Collateral [Abstract]
Covenant, leverage ratio, maximum				4.50		4.50
Credit Agreement \| Revolving Credit Facility \| Net Leverage Ratio, June 2023 and Thereafter
Secured Borrowings and Collateral [Abstract]
Covenant, leverage ratio, maximum				4.25		4.25
Credit Agreement \| Revolving Credit Facility \| Interest Coverage Ratio, September 2022
Secured Borrowings and Collateral [Abstract]
Covenant, interest coverage ratio, maximum				2.25		2.25
Credit Agreement \| Revolving Credit Facility \| Interest Coverage Ratio, December 2022
Secured Borrowings and Collateral [Abstract]
Covenant, interest coverage ratio, maximum				2.50		2.50
Credit Agreement \| Revolving Credit Facility \| Interest Coverage Ratio, December 2022 and Thereafter
Secured Borrowings and Collateral [Abstract]
Covenant, interest coverage ratio, maximum				2.75		2.75
Credit Agreement \| Revolving Credit Facility \| Minimum
Secured Borrowings and Collateral [Abstract]
Variable rate				0.50%
Credit Agreement \| Revolving Credit Facility \| Maximum
Secured Borrowings and Collateral [Abstract]
Variable rate				1.25%
Number of dividends paid in fiscal year	$ 200,000,000
Free cash flow	50.00%
Credit Agreement \| Revolving Credit Facility \| Federal Funds Rate
Secured Borrowings and Collateral [Abstract]
Variable rate	0.50%
Credit Agreement \| Revolving Credit Facility \| SOFR
Secured Borrowings and Collateral [Abstract]
Variable rate	1.00%
Base rate (percent)				2.00%
Credit Agreement \| Revolving Credit Facility \| SOFR \| Minimum
Secured Borrowings and Collateral [Abstract]
Variable rate				1.50%
Credit Agreement \| Revolving Credit Facility \| SOFR \| Maximum
Secured Borrowings and Collateral [Abstract]
Variable rate				2.25%
2023 Senior Notes \| Revolving Credit Facility
Secured Borrowings and Collateral [Abstract]
Debt value	$ 650,000,000
Required maximum outstanding amount	$ 300,000,000
Senior Notes \| 4.625% Senior Notes
Secured Borrowings and Collateral [Abstract]
Debt redeemed		350,000,000
Debt value		$ 1,000,000,000
Debt redemption price, percent		4.625%
Cash consideration		$ 353,000,000
Redemption premium par value ((in dollars per share) \| $ / shares		$ 3
Net loss		$ 4,000,000
Senior Notes \| 2025 And 2028 Senior Notes \| Xerox Holdings Corporation
Secured Borrowings and Collateral [Abstract]
Proceeds, net of fees and expenses			$ 1,494,000,000
Senior Notes \| 2025 And 2028 Senior Notes \| XEROX CORPORATION
Secured Borrowings and Collateral [Abstract]
Related party debt				$ 1,496,000,000		$ 1,496,000,000		$ 1,494,000,000
Interest payable				10,000,000		10,000,000		$ 30,000,000
Interest expense				$ 20,000,000	$ 21,000,000	$ 59,000,000	$ 60,000,000

Debt - Secured Assets and Obligations held by SPE (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Equipment on Operating Leases, Net	$ 216	$ 253
Special Purpose Entity (SPE)
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Finance Receivables, Net	877
Equipment on Operating Leases, Net	5
Secured Debt	707
Debt issuance costs	2	1
Special Purpose Entity (SPE) \| United States
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Finance Receivables, Net	804	688
Equipment on Operating Leases, Net	5	8
Secured Debt	642	560
Special Purpose Entity (SPE) \| United States \| January 2022
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Finance Receivables, Net	595
Equipment on Operating Leases, Net	0
Secured Debt	$ 474
Interest Rate	4.30%
Special Purpose Entity (SPE) \| United States \| September 2021
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Finance Receivables, Net	$ 209	308
Equipment on Operating Leases, Net	5	8
Secured Debt	$ 168	$ 293
Interest Rate	1.78%	1.40%
Special Purpose Entity (SPE) \| United States \| December 2020
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Finance Receivables, Net		$ 380
Equipment on Operating Leases, Net		0
Secured Debt		$ 267
Interest Rate		1.74%
Special Purpose Entity (SPE) \| Canada \| April 2022
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Finance Receivables, Net	$ 73
Equipment on Operating Leases, Net	0
Secured Debt	$ 65
Interest Rate	3.32%

Debt - Interest Income and Interest Expense Disclosure (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Debt Instrument [Line Items]
Interest expense	$ 49	$ 52	$ 151	$ 156
Interest income	55	56	164	169
2025 And 2028 Senior Notes \| Senior Notes \| XEROX CORPORATION
Debt Instrument [Line Items]
Interest expense	$ 20	$ 21	$ 59	$ 60

Financial Instruments - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Derivative [Line Items]
Notional amount	$ 1,201,000,000		$ 1,201,000,000		$ 1,113,000,000
Average maturity of foreign exchange hedging contract - within three months (as a percent of total contracts)	83.00%		83.00%
Average maturity of foreign exchange hedging contract - within three and six months (as a percent of total contracts)	8.00%		8.00%
Average maturity of foreign exchange hedging contract - within six and twelve months (as a percent of total contracts)	9.00%		9.00%
Derivative liabilities, at fair value, net	$ 18,000,000		$ 18,000,000		6,000,000
After-tax loss, net			21,000,000
Foreign currency transaction losses, before tax	1,000,000	$ 3,000,000	2,000,000	$ 6,000,000
Derivatives Designated as Hedging Instruments
Derivative [Line Items]
Derivative liabilities, at fair value, net	15,000,000		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	$ 21,000,000		$ 21,000,000		$ 3,000,000

Financial Instruments - Derivative Instruments Fair Value (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative assets	$ 17	$ 5
Derivative liabilities	(35)	(11)
Net derivative (liability) asset	(18)	(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	6	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	(27)	(6)
Derivatives Designated as Hedging Instruments \| Other long-term assets \| Interest rate cap
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative assets	5	1
Derivatives Designated as Hedging Instruments \| Other long-term assets \| Interest rate swap
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative assets	1	0
Derivatives NOT Designated as Hedging Instruments \| Foreign exchange contracts - forwards
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Net derivative (liability) asset	(3)	(4)
Derivatives NOT Designated as Hedging Instruments \| Other current assets \| Foreign exchange contracts - forwards
Summary Of Derivative Instruments By Hedge Designation [Abstract]
Derivative assets	5	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	$ (8)	$ (5)

Financial Instruments - Gains (losses) on Derivative Instruments (Details) - Foreign exchange contracts - forwards - Cash Flow Hedges - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Summary of Derivative Instruments Gains (Losses) [Abstract]
Derivative loss recognized in OCI (effective portion)	$ (3)	$ 3	$ (41)	$ (9)
Cost of Sales
Summary of Derivative Instruments Gains (Losses) [Abstract]
Derivative loss reclassified from AOCL to income - Cost of sales (effective portion)	$ (11)	$ (2)	$ (17)	$ (5)

Financial Instruments - Derivatives Not Designated as Hedging Instruments Gains (Losses) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Foreign exchange contracts - forwards \| Other expense – Currency gains (losses), net \| Derivatives NOT Designated as Hedging Instruments
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on non-designated derivative instruments	$ 1	$ 2	$ (22)	$ (20)

Fair Value of Financial Assets and Liabilities -Fair Value of Financial Assets and Liabilities (Details) - Recurring - Level 2 - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Assets
Total	$ 32	$ 23
Liabilities
Total	49	29
Foreign exchange contracts - forwards
Assets
Total	11	4
Liabilities
Total	35	11
Interest rate cap
Assets
Total	5	1
Interest rate swap
Assets
Total	1	0
Deferred compensation plan investments in mutual funds
Assets
Total	15	18
Liabilities
Total	$ 14	$ 18

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	Sep. 30, 2022	Dec. 31, 2021
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	$ 932	$ 1,840
Accounts receivable, net	835	818
Short-term debt and current portion of long-term debt	1,070	650
Long-term debt	2,676	3,596
Carrying Amount \| Xerox Holdings Corporation
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	1,496	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	286	210
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	932	1,840
Accounts receivable, net	835	818
Short-term debt and current portion of long-term debt	1,066	653
Long-term debt	2,296	3,776
Fair Value \| Xerox Holdings Corporation
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	1,280	1,579
Fair Value \| XEROX CORPORATION
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	730	1,987
Fair Value \| Xerox - Other Subsidiaries
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	$ 286	$ 210

Employee Benefit Plans - Net Periodic Benefit Cost and Other Changes in Plan Assets and Benefit Obligations (Details) - USD ($)
$ in Millions

3 Months Ended

9 Months Ended

Sep. 30, 2022

Mar. 31, 2022

Sep. 30, 2021

Sep. 30, 2022

Sep. 30, 2021

Pension Benefits | U.S. Plans

^[1]

$ (18)

$ (64)

Expected return on plan assets

Service cost

$ 0

Interest cost

(22)

(29)

(73)

(84)

Recognized net actuarial loss (gain)

Amortization of prior service credit

(1)

Recognized settlement loss

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)

(14)

(83)

Prior service cost (credit)

Amortization of net actuarial (loss) gain

(13)

(17)

(53)

(54)

Amortization of net prior service credit

Total Recognized in Other Comprehensive (Loss) Income

(31)

(19)

(136)

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

(24)

(110)

Pension Benefits | Non-U.S. Plans

Expected return on plan assets

Service cost

Interest cost

(58)

(53)

(172)

(157)

Recognized net actuarial loss (gain)

Amortization of prior service credit

Recognized settlement loss

Defined contribution plans

(15)

(10)

(47)

(31)

Net Periodic Benefit Cost (Credit)

(12)

(5)

(36)

(16)

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

Net actuarial loss (gain)

Prior service cost (credit)

Amortization of net actuarial (loss) gain

(6)

(15)

(18)

(44)

Amortization of net prior service credit

(1)

Total Recognized in Other Comprehensive (Loss) Income

(6)

(15)

(43)

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

(18)

(20)

(59)

Retiree Health

Expected return on plan assets

Service cost

Interest cost

Recognized net actuarial loss (gain)

(1)

(2)

Amortization of prior service credit

(4)

(16)

(11)

(49)

Recognized settlement loss

Net Periodic Benefit Cost (Credit)

(3)

(14)

(6)

(42)

(3)

(14)

(6)

(42)

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

Net actuarial loss (gain)

(13)

(20)

Prior service cost (credit)

(10)

$ (23)

(33)

Amortization of net actuarial (loss) gain

Amortization of net prior service credit

Total Recognized in Other Comprehensive (Loss) Income

(18)

(40)

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

$ (21)

$ 3

$ (46)

$ 10

[1]

Employee Benefit Plans - Pension Plans and Retiree Health Benefit Plans (Details) - USD ($) $ in Millions	9 Months Ended		12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Schedule of Defined Benefit Plans Disclosures [Line Items]
Defined benefit plan, contributions by employer	$ 106	$ 119	$ 160
Defined benefit plan, expected future employer contributions	145
Pension Benefits
Schedule of Defined Benefit Plans Disclosures [Line Items]
Defined benefit plan, contributions by employer	93	102	135
Defined benefit plan, expected future employer contributions	120
Retiree Health
Schedule of Defined Benefit Plans Disclosures [Line Items]
Defined benefit plan, contributions by employer	13	17	25
Defined benefit plan, expected future employer contributions	25
U.S. Plans \| Pension Benefits
Schedule of Defined Benefit Plans Disclosures [Line Items]
Defined benefit plan, contributions by employer	18	18	24
Defined benefit plan, expected future employer contributions	25
Non-U.S. Plans \| Pension Benefits
Schedule of Defined Benefit Plans Disclosures [Line Items]
Defined benefit plan, contributions by employer	75	$ 84	$ 111
Defined benefit plan, expected future employer contributions	$ 95

Accumulated Other Comprehensive Income (Loss) [Line Items]

Amount of contribution received by defined benefit plan from employer which increases plan assets.

+ References + Details

Employee Benefit Plans - Contributions and Narrative (Details) - USD ($)	1 Months Ended	3 Months Ended			9 Months Ended
	Apr. 30, 2022	Sep. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Schedule of Defined Benefit Plans Disclosures [Line Items]
Pension award payment percentage	7.50%
Increase to PBO	$ 48,000,000
Percentage of total PBO							1.40%
Actual returns and actuarial experience, additional loss	$ 31,000,000
Retiree Health
Schedule of Defined Benefit Plans Disclosures [Line Items]
Reduction in the Company's postretirement benefit obligation		$ 10,000,000	$ 23,000,000	$ 0	$ 33,000,000	$ 0
U.S. Plans \| Pension Benefits
Schedule of Defined Benefit Plans Disclosures [Line Items]
Reduction in the Company's postretirement benefit obligation		0		$ 0	0	$ 0
U.S. Plans \| Pension Benefits \| Qualified Plan
Schedule of Defined Benefit Plans Disclosures [Line Items]
Mandatory future contributions		$ 0			$ 0

Shareholders' Equity of Xerox Holdings - Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	$ 3,882	$ 5,295	$ 4,443	$ 5,596
Comprehensive income (loss), net	(599)	19	(1,003)	216
Cash dividends declared - common	(40)	(46)	(120)	(142)
Cash dividends declared - preferred	(4)	(4)	(11)	(11)
Stock option and incentive plans, net	14	14	53	31
Payments to acquire treasury stock, including fees		(87)	(113)	(500)
Cancellation of treasury stock		0	0	0
Investment from noncontrolling interests	1		6	5
Other		4
Distributions to noncontrolling interests			(1)
Balance at end of period	$ 3,254	$ 5,195	$ 3,254	$ 5,195
Dividends per common share (in dollars per share)	$ 0.25	$ 0.25	$ 0.75	$ 0.75
Dividends per preferred share (in dollars per share)	$ 20.00	$ 20.00	$ 60.00	$ 60.00
Xerox Holdings Shareholders’ Equity
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	$ 3,873	$ 5,287	$ 4,436	$ 5,592
Comprehensive income (loss), net	(600)	20	(1,002)	217
Cash dividends declared - common	(40)	(46)	(120)	(142)
Cash dividends declared - preferred	(4)	(4)	(11)	(11)
Stock option and incentive plans, net	14	14	53	31
Payments to acquire treasury stock, including fees		(87)	(113)	(500)
Investment from noncontrolling interests				1
Other		4
Balance at end of period	3,243	5,188	3,243	5,188
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	155	189	168	198
Stock option and incentive plans, net	1	0	2	1
Cancellation of treasury stock		(7)	(14)	(17)
Balance at end of period	$ 156	182	$ 156	182
Par value (in dollars per share)	$ 1		$ 1
Additional Paid-in Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	$ 1,564	2,214	$ 1,802	2,445
Stock option and incentive plans, net	13	14	51	30
Cancellation of treasury stock		(152)	(276)	(396)
Investment from noncontrolling interests				1
Other		4
Balance at end of period	1,577	2,080	1,577	2,080
Treasury Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	0	(159)	(177)	0
Payments to acquire treasury stock, including fees		(87)	(113)	(500)
Cancellation of treasury stock		159	290	413
Balance at end of period	0	(87)	0	(87)
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	5,484	6,308	5,631	6,281
Comprehensive income (loss), net	(383)	90	(443)	220
Cash dividends declared - common	(40)	(46)	(120)	(142)
Cash dividends declared - preferred	(4)	(4)	(11)	(11)
Balance at end of period	5,057	6,348	5,057	6,348
AOCL
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	(3,330)	(3,265)	(2,988)	(3,332)
Comprehensive income (loss), net	(217)	(70)	(559)	(3)
Balance at end of period	(3,547)	(3,335)	(3,547)	(3,335)
Non-controlling Interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period	9	8	7	4
Comprehensive income (loss), net	1	(1)	(1)	(1)
Investment from noncontrolling interests	1		6	4
Distributions to noncontrolling interests			(1)
Balance at end of period	$ 11	$ 7	$ 11	$ 7

Shareholders' Equity of Xerox Holdings - Treasury Stock (Details) - shares shares in Thousands	3 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022
Common Stock Shares
Increase (Decrease) In Treasury Stock [Roll Forward]
Beginning balance (in shares)	154,966	156,358	168,069
Stock based compensation plans, net (in shares)	604	116	630
Acquisition of Treasury stock (in shares)			0
Cancellation of Treasury stock (in shares)		(1,508)	(12,341)
Ending balance (in shares)	155,570	154,966	156,358
Treasury Stock Shares
Increase (Decrease) In Treasury Stock [Roll Forward]
Beginning balance (in shares)	0	1,508	8,675
Stock based compensation plans, net (in shares)	0	0	0
Acquisition of Treasury stock (in shares)			5,174
Cancellation of Treasury stock (in shares)		(1,508)	(12,341)
Ending balance (in shares)	0	0	1,508

Shareholder's Equity of Xerox (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Increase (Decrease) in Stockholder's Equity [Roll Forward]
Balance at beginning of period	$ 3,882	$ 5,295	$ 4,443	$ 5,596
Comprehensive income (loss), net	(599)	19	(1,003)	216
Investment from noncontrolling interests	1		6	5
Distributions to noncontrolling interests			(1)
Balance at end of period	3,254	5,195	3,254	5,195
XEROX CORPORATION
Increase (Decrease) in Stockholder's Equity [Roll Forward]
Balance at beginning of period	4,129	5,561	4,697	7,394
Comprehensive income (loss), net	(599)	19	(1,003)	216
Dividends declared to parent	(49)	(215)	(645)	(774)
Intercompany loan capitalization				(1,494)
Transfers from parent	13	96	441	114
Investment from noncontrolling interests	1		6	5
Distributions to noncontrolling interests			(1)
Balance at end of period	3,495	5,461	3,495	5,461
Xerox Holdings Shareholders’ Equity
Increase (Decrease) in Stockholder's Equity [Roll Forward]
Balance at beginning of period	3,873	5,287	4,436	5,592
Comprehensive income (loss), net	(600)	20	(1,002)	217
Investment from noncontrolling interests				1
Balance at end of period	3,243	5,188	3,243	5,188
Xerox Holdings Shareholders’ Equity \| XEROX CORPORATION
Increase (Decrease) in Stockholder's Equity [Roll Forward]
Balance at beginning of period	4,120	5,553	4,690	7,390
Comprehensive income (loss), net	(600)	20	(1,002)	217
Dividends declared to parent	(49)	(215)	(645)	(774)
Intercompany loan capitalization				(1,494)
Transfers from parent	13	96	441	114
Investment from noncontrolling interests				1
Balance at end of period	3,484	5,454	3,484	5,454
Additional Paid-in Capital
Increase (Decrease) in Stockholder's Equity [Roll Forward]
Balance at beginning of period	1,564	2,214	1,802	2,445
Investment from noncontrolling interests				1
Balance at end of period	1,577	2,080	1,577	2,080
Additional Paid-in Capital \| XEROX CORPORATION
Increase (Decrease) in Stockholder's Equity [Roll Forward]
Balance at beginning of period	3,630	3,413	3,202	4,888
Intercompany loan capitalization				(1,494)
Transfers from parent	13	96	441	114
Investment from noncontrolling interests				1
Balance at end of period	3,643	3,509	3,643	3,509
Retained Earnings
Increase (Decrease) in Stockholder's Equity [Roll Forward]
Balance at beginning of period	5,484	6,308	5,631	6,281
Comprehensive income (loss), net	(383)	90	(443)	220
Balance at end of period	5,057	6,348	5,057	6,348
Retained Earnings \| XEROX CORPORATION
Increase (Decrease) in Stockholder's Equity [Roll Forward]
Balance at beginning of period	3,820	5,405	4,476	5,834
Comprehensive income (loss), net	(383)	90	(443)	220
Dividends declared to parent	(49)	(215)	(645)	(774)
Balance at end of period	3,388	5,280	3,388	5,280
AOCL
Increase (Decrease) in Stockholder's Equity [Roll Forward]
Balance at beginning of period	(3,330)	(3,265)	(2,988)	(3,332)
Comprehensive income (loss), net	(217)	(70)	(559)	(3)
Balance at end of period	(3,547)	(3,335)	(3,547)	(3,335)
AOCL \| XEROX CORPORATION
Increase (Decrease) in Stockholder's Equity [Roll Forward]
Balance at beginning of period	(3,330)	(3,265)	(2,988)	(3,332)
Comprehensive income (loss), net	(217)	(70)	(559)	(3)
Balance at end of period	(3,547)	(3,335)	(3,547)	(3,335)
Non-controlling Interests
Increase (Decrease) in Stockholder's Equity [Roll Forward]
Balance at beginning of period	9	8	7	4
Comprehensive income (loss), net	1	(1)	(1)	(1)
Investment from noncontrolling interests	1		6	4
Distributions to noncontrolling interests			(1)
Balance at end of period	11	7	11	7
Non-controlling Interests \| XEROX CORPORATION
Increase (Decrease) in Stockholder's Equity [Roll Forward]
Balance at beginning of period	9	8	7	4
Comprehensive income (loss), net	1	(1)	(1)	(1)
Investment from noncontrolling interests	1		6	4
Distributions to noncontrolling interests			(1)
Balance at end of period	$ 11	$ 7	$ 11	$ 7

Stock-Based Compensation - Narrative (Details) - USD ($) shares in Thousands, $ in Millions	1 Months Ended	9 Months Ended
	Mar. 31, 2022	Sep. 30, 2022	Sep. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation		$ 63	$ 44
Accelerated expense associated with vesting of outstanding equity awards		$ 21
CareAR Holdings, LLC \| Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options (in shares)	105
Stock-based compensation expense, pre-tax	$ 30
Stock options grants (in shares)	90
Straight-line basis over period	4 years 8 months 12 days
Expiration period	10 years
CareAR Holdings, LLC \| Graded vesting after years one and two of service period \| Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options vest on a granted scheduled	10.00%
CareAR Holdings, LLC \| Graded vesting after years three and four of service period \| Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options vest on a granted scheduled	20.00%
CareAR Holdings, LLC \| Graded vesting after year five of service period \| Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options vest on a granted scheduled	40.00%
CareAR Holdings, LLC \| Minimum \| Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period	90 days
CareAR Holdings, LLC \| Maximum \| Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period	1 year

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

3 Months Ended

9 Months Ended

Sep. 30, 2022

Sep. 30, 2021

Sep. 30, 2022

Sep. 30, 2021

Other Comprehensive Loss, Net Attributable to Xerox Holdings/Xerox

^[1]

$ (217)

$ (70)

$ (559)

$ (3)

Translation Adjustments Losses

Accumulated Other Comprehensive Income (Loss) [Line Items]

(280)

(129)

(646)

(126)

Unrealized (Losses) Gains

(277)

(125)

(636)

(122)

Accumulated Other Comprehensive Income (Loss) [Line Items]

(24)

(4)

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

(19)

(3)

(3)

(41)

(9)

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

(3)

(32)

(7)

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 (losses) gains

Accumulated Other Comprehensive Income (Loss) [Line Items]

(5)

(61)

Prior service amortization

(4)

(47)

Accumulated Other Comprehensive Income (Loss) [Line Items]

(3)

(16)

(10)

(50)

Actuarial loss amortization / settlement

(3)

(12)

(8)

(37)

Accumulated Other Comprehensive Income (Loss) [Line Items]

Accumulated Other Comprehensive Income (Loss) [Line Items]

Other gains

Changes in Defined Benefit Plans Gains

Accumulated Other Comprehensive Income (Loss) [Line Items]

155

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

122

Accumulated Other Comprehensive Income (Loss) [Line Items]

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

(215)

(65)

(573)

Other Comprehensive Loss, Net Attributable to Xerox Holdings/Xerox

$ (217)

$ (70)

$ (559)

$ (3)

[1]	Refer to Note 20 - Other Comprehensive (Loss) Income for gross components of Other comprehensive loss, net, reclassification adjustments out of Accumulated other comprehensive loss and related tax effects.

Other Comprehensive (Loss) Income - Accumulated Other Comprehensive Loss (AOCL) (Details) - USD ($) $ in Millions	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stockholders' equity	$ 3,254	$ 3,882	$ 4,443	$ 5,195	$ 5,295	$ 5,596
Cumulative translation adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stockholders' equity	(2,497)		(1,861)
Other unrealized losses, net
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stockholders' equity	(21)		(2)
Benefit plans net actuarial losses and prior service credits
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stockholders' equity	(1,029)		(1,125)
Total Accumulated Other Comprehensive Loss Attributable to Xerox Holdings/Xerox
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stockholders' equity	$ (3,547)	$ (3,330)	$ (2,988)	$ (3,335)	$ (3,265)	$ (3,332)

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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
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